I decided to make some personal investigations into this. I wanted to know "how much better" is Camera 360 than the stock camera app. We all know it has plenty more features, hands down. But is it really that much better, as far as the picture quality goes?
I took all the pictures at 5 megapixel, but I had to resize them all down to 1600 x 1200 for Photobucket to fit the 1 MB file limit (and resized all of them to give them all a fair shot, in case it introduced artifacts and such). I also thumbnailed them in the post for sheer size reasons. But you can click on them for more detail if you want.

Control
First up, the control picture. Its the control picture, because its taken from a dedicated digital camera, so it should get the focus, lighting, and such correct. Its a 3 year old Olympus FE-340 point and shoot. So its not anything professional, but its better than a cell phone camera that's for sure. And the picture it shows here is pretty accurate to the real thing.

Medium Sharpness - Stock App
This picture is taken from the stock camera app, with medium sharpness.

High Sharpness - Stock App
Then this picture from the stock app, with high sharpness.

Camera 360 Test Picture
Then this one, from the Camera 360 app.
And here is a section compare in Photoshop.
My verdict: While the quality is good, it seems to me, that the results are almost no different than using the stock app and changing the the sharpness all the way up. I personally think that the stock app yields far more natural looking results at medium sharpness and is closer to a dedicated digital camera. It seems that is exaggerates lines and edges to make it look like its far sharper, but it really isn't. My opinion of course, and you can formulate your own from my sample pictures or your own.
However, 360 does have a far greater feature set, and has the stabilization feature so blurry pics are far less common. It also seems that it compresses the pictures more, as the stock camera takes nearly 2 MB pictures, and yet the same picture in 360 took only 900 KB. Maybe the stock camera is saving them at 100% quality JPEG's?