The photo problem with the S3 appears to be a combination of design flaws in the software and lack of proper integration with newer, less-tested hardware.
I have 20 years of professional photo expertise, more than half with digital (SLRs and everything else, including many camera phones. I have taken some *stunning* photos with my old S2, even on par with some of my best SLR photos (especially macros, which the S2 excelled at). I have been unable to produce other than average or terrible photos with my S3 (so far, after a day or two).
The S2 took better pix with the stock app, but the S3 clearly has a focus-timing problem, as clearly stated by someone else in the know (here and on other blogs). Expecting a camera phone to be better than an SLR or point-and-shoot is completely irrelevant here, and somewhat demeaning to photo and computing experts (such as myself). CameraZoom FX does a much better job, and the "shutter lag/delay" trick described (for the built-in camera app) will probably be a decent hold-over until the apps and/or hard/firm-ware are corrected.
I've taken thousands of photos with my S2, some in extremely unfavorable conditions (dimly lit bars and stages)...and they came out degrees better than my new S3. I have taken several dozens of photos with my S3, and even with the flash, the auto-focus hunting was not a problem on the S2. This is clearly a problem with the S3. Out of 30 photos I took last night, I deleted 10 that were completely atrocious, and only 2 of the 30 are even marginally OK (about 10% quality, versus 60-100% on my S2 photos in identical conditions).
I will be talking to my local techs at the Sprint store to see if they can come up with anything more helpful. Samsung rushed the hardware out the door before enough extensive testing could have been done, instead expecting the user community to "crowd-source" more extensive testing (at a hidden cost to the consumer and savings to the manufacturer). I have found other bugs in my S3 that I will be bringing to the attention of Sprint and Samsung.