I decided to take a few shots with both my iPhone 3G and the Palm Pre to give a good idea of how the cameras stack up. The iPhone 3G has a 2 megapixel sensor with fixed focus (the new iPhone 3GS greatly improves on this with 3 megapixels and autofocus) and the Pre serves up 3 megapixels also with fixed focus.
While the Pre's photos are obviously higher resolution and seem sharper at times, the iPhone is much better at processing color, brightness and contrast. The Pre wins points however for having a much faster camera, both in starting the application and snapping photos.
Check out the comparison shots after the jump.