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It definitely has issues. Noticed right away coming from an S3. It can take good photos, but its like flipping a coin. The camera is a big downer. But I am not HUGE into smart phone photography...
I have read and seen lots of sites report about the update. Says it makes it much improved. There is a thread on this site where we talked about it some more.
http://androidforums.com/motorola-moto-x/772722-moto-x-camera-software-update.html
If you are on Verizon Wireless the Moto X has not received the same camera update that T-Mobile and AT&T have gotten recently.
The camera post update is much better, not perfect, but better. As far as a one update change goes, it's night and day. I assume (and am hopeful) that future updates will also refine some elements.
Still waiting on VZW. Painful as usual.