camera quality

It may not be Sony Ericsson quality, but overall I find that the Desire has a pretty good camera.  However there's a major design flaw when it comes to ergonomics.  If you push the trackball in an attempt to take a picture, you'll usually rotate the phone sideways just a little bit. 
As a result of that rotation and the fact that it occurs at the exact moment the camera tries to take the picture, most of your pics won't be sharp indeed.  It takes a lot of practice to learn how to take good pics with this phone. 

I've taken roughly 500 pics with mine, and about 200 of them were good.  Right now I still mess up once every 4 or 5 pics.