It depends on what you are taking pictures of. If you have a small child who is doing something funny and you want to get her picture RIGHT NOW, forget it. Same with pets or anything moving.
Now, if you want to get a picture of your lunch for Yelp, assuming nothing on the plate is moving, you can take a very nice picture.
I am a bit tired of the defense that "it IS a phone, after all." That does not ring true with me. It's a phone, a camera, and many other things. The main problem I have with my Droid3 is that it has so much potential, but it was released in various states of development. It's incomplete.
It's as if Ferrari released a car with a lawnmower engine and an 800W surround sound 7.1 stereo enabled to play AM radio only. Then when you told them it didn't do what you bought it for, they quickly released another car and completely forgot to fix any of the issues they did not fix before releasing your car.
If you have a Droid 3, you get the picture. (Actually, if you're taking pictures with a Droid 3, you get the picture 2~5 seconds after what you really wanted to get.)