Looks like the issue is due to the effects of digital zoom.
There is a significant difference in quality between digital and optical zoom. With optical zoom, lenses magnify the image before the picture is taken, resulting in a much higher quality. With digital zoom, the image is "magnified" by cropping it down and zooming in after the image is taken. Its kind of like taking a picture through a magnifying glass of an image that has already been photographed. Any distortion that is there is simply magnified.
Since our phones - and most, if not all camera phones only have digital zoom, zooming in on the image rather than the object will result in image distortion.
However, our phones do have an excellent image sensor and standard lens and are capable of taking exceptionally good pictures. IMHO, auto mode with auto HDR enabled has a tendency to take bad (well, not perfect) pictures. Its good in a pinch when you want to take the phone out of your pocket and snap a picture, however, if you want to take a "reference" shot, or one that you want to publish or keep, our phones have an outstanding manual mode. Its not easy at first but using manual mode with some practice will yield some exceptional photos...on par with some very good DSLR cameras.
David