I found the Desire camera to be much better than the one on the HTC Hero I had before, but agree, no-where near as good as the camera I had on my Nokia N82 with xenon flash (that was a really good camera phone). However like Verses says, the quality of the rest of the phone more than makes up for it!
I use the FM radio occassionally (my data allowance would be eaten up by t’internet radio…probably), but I find the quality really does depend upon the earphones you’re using – my Sony Walkman earphones picked up an excellent signal but my new Seinheisser one’s aren’t as good despite being decent earphones of similar quality/price bracket.