Wow! I had gotten used to the 7650's sorta sucky camera quality but I just snapped some pics with my new 3650 and am REALLY impressed! I selected "high quality" because with the MMC card there's no reason to skimp on a few extra KB and the results are impressive. The images are pretty great, both from a physical lense perspective and a data perspective. The shots are just nicer. See for yourself above.
You can check out the pics I took this evening with the 3650 here and for a comparision, check out similar outdoor shots I took with the 7650 here. (Yes, that's my family. Say hi. :-) ) You'll notice that there's no Fish Eye effect on the borders on the new phone and the quality of the images are just a lot nicer.
Very cool. Even more reason to leave the digital camera at home unless I'm really concerned about a good pic. Also, if you want to see what the camcorder looks like, I took some video which you can find in this .3GP file here. Prizes awarded for anyone who figures out how to play that video without using Nokia's proprietary Multimedia player.