How can two different 2.0 megapixel camera be so different

[djk1]

Just got my touch a few days ago. So far its been beautiful. There is one thing I dont understand. I checked my friends iPhone and took some pictures with it and than I took some pictures with my Touch. The results upset me. Here I was bragging to him that my phone can do anything his can do plus so much more. But when I looked at his pictures and compared them to mine, he laughed at me. Both are 2 Megapixel cameras and yet his takes beautiful shots while the Touch looks like a picture from a flip phone that hit the streets two years ago. Dont get me wrong I love the touch, but what gives. Could HTC be using cheap camera? Is there any tricks or registry hacks that I dont know about? If there is please let me know.