The Moto Droid has a very good camera IF you're in very good light and the subject is very still (as in inanimate). If you're trying to snap a quick pic of the kid doing something cute in the living room at night with just house lights, forget about it. You'll end up with a dark, murky, grainy blur that somewhat resembles your child, but not really.
But if you're taking a picture of your new car in the driveway to show off on Facebook, you're in luck! Your new Droid will handle the task beautifully. Unless you're prone to shaking, then you're just hosed overall.