Hi, just posting here my experience in trying to get this problem "fixed". So I went to an authorized service center and complained about the poor camera quality. They installed a new LCD in my MBA (they have no spare parts for just the camera) and to my surprise....it's still the same poor quality I mentioned above in my post 2 months ago. I called Apple Support and was assisted by a Senior Tech Support for my case. After a series of going back and forth to 2 more service centers in my country, we've found out that the CAMERA QUALITY IS NORMALLY THIS BAD. I also visited several authorized reseller stores and quality is same for all of them, even rMBP's camera is not that good (MBA is still worse).
I think this is a case of FALSE ADVERTISEMENT. There is nothing HD about the quality of photos produced by their internal cameras. Very far from what the ads show you in their website if you go to the camera part. I came from using a 2010 MBP and I really thought the camera quality has bumped up (iSight --> Facetime --> Facetime HD). I asked the Senior Tech to escalate this as it is clear that the ads they have in the Apple site is misleading. Naming the camera Facetime HD, having these descriptive words as the camera's supposed quality...
Let your friends and family see more of you with the 720p FaceTime HD camera. Every smile looks bright, even halfway around the world. And the widescreen format means everyone can fit into the picture without having to crowd around the display.
.....is misleading as well as the ad imagery which seems to be giving a promise of a high quality camera at first glance. I love apple products but this is really disappointing.
It might help if all of you who share the same sentiments as mine would submit a complain through the Apple support link above. Just let them know you're not happy with your unit's camera and mention this false advertisement going on. I wonder if there's a better way to 'escalate' this issue?