The other key problem with the camera is the main problem with this phone; its rather poor quality screen. Try and take a photo over your head or from low down and you simply can't see what's on-screen, the viewing angles are so bad. The relatively low maximum brightness also makes it difficult to see in bright sunlight.
This isn't such a dramatic problem in everyday use, particularly as you're unlikely to be watching video or browsing the web with much regularity on a screen only 2.2-inches across. Also, given the price of this phone, it's to be expected that the screen isn't setting new standards in quality. Nonetheless, it's definitely something of a let down.
These basic candybar handsets, despite looking very similar to phones of years ago, have actually moved on a great deal in functionality. You can get a surprising amount done on this handset over and above making calls and texting.
There are apps for Facebook, Friendster, Myspace, and Youtube, as well as a web browser, OVI maps, MobileTV, a couple of surprisingly fun games, and access to Nokia's OVI app store. The number of apps that are useful for and will work on such a modest device is limited, but you might be able to find some useful additions.
The software in general is easy enough to use. You get none of the flair of an iPhone or similar, but it's fast and intuitive enough to use. That said, there are a few basics missing and other areas where Nokia has slipped up.