I guess that depends on how important the camera is to you, how long you are willing to wait and how much faith you put in rumors. I am not willing to wait at least 6 months to see what rumored features are added to the next iPhone. If version 2 ends up being significantly better than the first version, I will sell mine and buy the new one. In the mean time I will enjoy the goodness that version 1 has to offer

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For me, the camera is a nice addition, but not a deal breaker. I will use it for a candid photo here and there. I don't expect a phone camera to replace my stand alone camera. When I need high quality pictures, I will bring my stand alone camera.
I really don't think you are right about new tech "allways" having a lot of bugs. That really depends on who is making it and how thoroughly they test it. If this were a Microsoft product, then I think you would have a much better chance of being right

. I think Apple has put too much on the line with this product not to do the best they can. With Steve Jobs being one of the beta testers, I have confidence that it won't ship until he is satisfied.