The camera on the iPhone 4 is indeed much better, and although image quality noticeably drops off in low light, it’s still a huge improvement over the 3GS. The flash, however, is a different story. While it does illuminate the subject, I find the red-eye and the overwhelming yellow tint to often not be worth the tradeoff.

I have posted some pics taken last night at the Eagles concert here in Houston for your viewing pleasure. (The first photo was taken a couple of nights ago at Santos Mexican restaurant on Westheimer and demonstrates the overly-warm cast of pictures taken with the flash.)

As you can see, the photo quality is excellent for a cell phone and it performs pretty solidly in low-light situations. Note, though, the washed-out effect that was caused by me inadvertently leaving the flash on during a low-light shot.