We have a guy on our support forms who has been running into issues with the android camera. I am going to paste some of his findings below.
We've done a bunch of testing, and it looks like the problem is not specifically with the Droid X, but rather with how PhoneGap handles memory management for the Camera API.
If lots of other apps are running, then the app restarts after the camera API is called, a picture taken, and "saved". If only a few apps are running (i.e. there is more free memory), then the camera API works as designed and the user is returned to the app after taking and saving the picture.
The Android Camera issues are becoming a show-stopper for us. We've tried installing the latest nightly builds that supposedly fix the problems, but Phonegap still crashes on a Droid when taking a picture.
This problem is not at all isolated to us. For now, it seems that Phonegap is unusable as an app platform for Android if the camera is involved.
Are there any plans to escalate this issue so Android Apps using the camera can be deployed?
Here's how widespread this issue is:
Seems like he is having the issue mainly with Droid X (Android 2.3)
I will send him this link and get him to come give more details on the issue.