For the most part, the camera hardware on the new Windows Phone 7 devices perform really good (save the HD7's pink color cast). The biggest headache the Windows Phone 7 camera presents is on the software side. Tweak the settings and when you exit the camera, the phone reverts to the default settings.
MobileTechWorld recently put the latest unlocked emulator through the ropes (which reflects the pending WP7 update) and discovered that the update doesn't address this feature. Camera settings continue to revert to the default settings when you exit the app.
No official word from Microsoft if this "fix" ever made the drawing board for the update or, like the screen capture feature, wasn't brought up enough in research groups. There is a long shot that adding the ability to retain camera settings made it to the update after the emulator was updated but we're not holding our breaths on that one. We can only hope it makes the next update.
Oh and if Microsoft is listening, this (along with screen captures) is a feature we'd like to see.
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George is the Reviews Editor at Windows Central, concentrating on Windows 10 PC and Mobile apps. He's been a supporter of the platform since the days of Windows CE and uses his current Windows 10 Mobile phone daily to keep up with life and enjoy a game during down time.