the reversing camera is not great quality, but honestly, how many of us want hi-def reverse camera pictures?
its an aid, doesn't need to be high quality and shouldn't be relied upon.
I too think the image is crappy, but frankly, its not keeping me awake at night as I have driven for years without one and the day i rely upon a camera for reversing, rather than the aid it is will be the day i stop driving!

(sorry, im in a filthy mood tonight)

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2008 E70 4.8i M Sport, Aero Package, Saphire Black on Black
215 21" wheels, Comfort Seats, Active Headrests, Sunroof, Premium Sound, Einsenmann Exhaust
Inbound: ACS Interior, Carbon Roundels and DVD System.

2005 E53 X5 4.8is (donated to wife)
2007 E90 323i M Sports Tourer (retired)
2006 E46 M3 Cabriolet (retired)
2001 E53 X5 4.4i Sports (retired)