Camera of iPhone 5 is worse than 4 and 4s. Blurry pictures, bad motion handling, etc.

Question

I have to say, I am completely disappointed in my iPhone 5 from a camera perspective.  This phone camera (the back one, not the front one used for Facetime), can not handle the slightest bit of motion without showing extreme amounts of blurr.  Unless you are taking a sitting portrait shot, this camera has problems.  I have taken pictures, side by side, with my wife and her iPhone 4S and her pictures are clear as day compared to mine.  In fact, when we swap phones, I take clear shots on hers while mine shows blurr in the same setting.
I had an iPhone 4 and an iPhone 3S before this and neither one had this problem.  Does the phone take higher res photos?  Yes.  Does it handle low light situations better?  Yes.  Are the actual pictures better?  Absolutely not.  Perhaps aperture isn't large enough to let in light?  I don't know.  And, I have tried with HDR on.  This produces even worse effect.  I liked HDR on my iPhone 4...it took better pictures than default with no motion blurr issues.  But on the 5, if everything isn't perfectly still, there is ghosting and blurr.
Things I have tried or considered:
Replaced phone at Apple Store...no effect
Multiple restores...no effect
All software updates...no effect
cleaned phone...no effect (lense isn't dirty)
removed case...no effect.
I have to think it is just a flawed design on the iPhone 5.  Hopefully it is fixed in future iterations as I am thinking Galaxy for next upgrade.

Answer 1

Hello WillNoHo
Check out the quoted section below to troubleshoot issues with your camera on your iPhone. There are other options within the article if it does not resolve the issue for you.
iPhone: Hardware troubleshooting
http://support.apple.com/kb/ts2802
Camera isn't functioning or has undesired image quality
If the screen shows a closed lens or black image, force quit the Camera app.
If you do not see the Camera app on the Home screen, try searching for it in Spotlight. If the camera does not show up in the search, check to make sure that Restrictions are not turned on by tappingSettings > General > Restrictions.
Ensure the camera lens is clean and free from any obstructions. Use a microfiber polishing cloth to clean the lens.
Cases can interfere with the camera and the flash. Try gently cleaning the lens with a clean dry cloth or removing the case if you see image or color-quality issues with photos.
Try turning iPhone off and then back on.
Tap to focus the camera on the subject. The image may pulse or briefly go in and out of focus as it adjusts.
Try to remain steady while focusing:
Still images: Remain steady while taking the picture. If you move too far in any direction, the camera automatically refocuses to the center. 
Note: If you take a picture with iPhone turned sideways, it is automatically saved in landscape orientation.
Video: Adjust focus before you begin recording. You can also tap to readjust focus while recording. Exiting the Camera application while recording will stop recording and will save the video to the Camera Roll. 
Note: Video-recording features are not available on original iPhone or iPhone 3G.
If your iPhone has a front and rear camera, try switching between them to verify if the issue persists on both.
Regards,
-Norm G.