We played around with the camera and found that performance was exceptionally good in very low light conditions. The 8-megapixel camera brings a easy to use interface that makes video, panorama, flip camera, HDR+, turn camera, flash settings and other modes easy to access. The camera is quick and makes a decent photos in daylight. The pictures are not spectacular but the results are more than adequate considering the price. They are good enough to post photos on Facebook, Instagram or similar social nonsense sites.
The image quality with flash in very low light conditions was a bit better than expected, and the images were quite useful. We did not notice too much grain and the flash worked quite well. The quality of low light flash pictures will definitely depend on the distance of the object from the lens, as such a small LED flash cannot light up a room. It will work sufficiently well in close proximity of an object, but bear in mind that a great big expensive SLR flash works well up to 2 meter (6 feet) so you should expect less than that on the small LED on the phone.
As you can see, dynamic range is still very limited, especially with cloudy skies.
Overall the pictures are much better than on the Nexus 4 and they are surprisingly good for a €350 to €399 phone, although some pricier phones are better. Video works well, even 1080p clips look good, but of course in good light conditions. In low light they tend to get a lot of noise making them less attractive, but still useful.