What would make a world of difference is if Moto would let you control the ISO and add saturation enhancement to all of those effects they give you.. The ISO is too high which is what causes the grainyness. High ISO helps you take pictures of moving objects but sacrifices image quality. If we had control of it then when you are taking a still picture you could lower it and take a nice looking image.
If that is not possible then some options for noise reduction would be really nice. The phone is a beast so it should handle post shot noise reduction and saturation/contrast enhancements with ease. Surprised no third party camera software does this (well) yet that I know of.
It's not an ISO issue, it's a sensor issue. Cameras in phones have tiny sensors so they cannot gather a whole lot of light. When you shoot with a sensor like this in low-light situations, you get noise. The noise is causing the graininess you see on the photos.
ISO settings (on digital cameras) mimick film speeds from back in the day. The higher the ISO number, the more sensitive the sensor (in this case) or the film (back in the day) is to light. This means, something with a higher ISO setting/rating will take less time to expose a shot at a lower ISO setting (all other things being equal). The problem with higher ISO settings (with digital cameras) is, you're more likely to introduce noise into the photo.
Now, some sensors are better than others at this. Some cameras are better at processing the noise to suppress it than others. But, at the end of the day, higher ISO settings will be more likely to cause more noise in a given shot.
With DSLRs, the sensors are a lot larger than what's in a phone (in the case of a full frame camera, they're downright HUGE compared to a phone). This helps them shoot at higher ISOs with less problems in the noise department. However, not all cameras are created equal. As I mentions some sensors are better than others. Some manufacturers use better software than others.
However, with today's technology, you aren't going to get much better than what you get out of phones in cameras (in general) in low-light situations--not if you want, "reasonably," priced phones that is.
As far as the Bionic's camera goes, I've not received my Bionic yet (should be here tomorrow) so I can't comment too much on it as I don't know if playing with various settings, using better technique may help significantly or not. From what I've seen, however, it's not really any worse than other cameras I've seen in phones (with a few notable exceptions such as the iPhone4 camera, which is quite good for being in a phone). So the jury is still out on the camera from my point of view.
Hope this helps clear up things for many people.