The camera on the Palm Pre is pretty nice. Images are much more clear and colors more true than they were on my Blackberry Pearl. Using the camera is straight-forward. The screen view shows you a very small (too small to see) thumbnail preview, a green camera button that can be used to capture images, and a flash on/off/auto button.
With no zoom or video recording capability, the Pre's 3.2 megapixel camera simply takes a pretty good picture and offers no bells and whistles. And it takes it relatively fast. You can capture about 4 pictures in 5 seconds.
I have read that some are unhappy with the fact that once you take a picture, you do not see a full, clear image of the shot you just took--rather, you see the small thumbnail. However, if this is the necessary compromise for being able to take pics so fast, I am actually totally fine not having a larger instant preview.
I love having the on/off/auto flash button right there on the first screen. I found it very annoying with my BB Pearl that I had to open a menu, scroll to flash, open flash, and then choose the option I wanted, and back out to take a pic. The Pre makes this adjustment much easier.
All in all, I think the Pre's camera takes decent pics and is easy to use. The camera application is simple and intuitive but lacks depth of features. Even so, the best camera is, as they say, the one you have with you. Though I have a number of higher mega-pixel cameras, I most often end up using my phone as my camera, and the Pre does an admirable job.