The Droid camera has more pixels and photos taken of text look sharper. But photos taken of rooms, of people, outdoor and indoor scenes seem to look better with the iPod. The iPod generation 4 is vastly different and a dramatically cost reduced version of the iPhone 4. They aren't even close. I didn't realize the cost of the h/w difference. Using low end h/w, the iPod is impressive engineering in terms of how good it is, battery life, usability, etc..