An iPhone 1? (because you can't possibly mean an iPhone 3GS or newer)
The camera is below average. It's not quite VGA bad, but it definitely needs a much better sensor and higher aperture.
I don't currently own one (it's on its way as we speak), but I'm not expecting much from it.
Google needs to decide to go for the gold with the next Nexus, because a lot of the things that they are screwing up right now (like the camera) are major deal breakers for a lot of people. The best way to get people serious about Android is to get them on a Nexus.
It's silly to me that they would put inferior parts onto a Nexus when they have a better product (imo) than Apple, outside of some of their hardware. (like the Camera, GPU, screen to some degree, and others)