arboreus

A few pictures speak more than a thousand words.

http://www.engadget.com/photos/samsung-galaxy-nexus-sample-camera-shots/

http://www.engadget.com/photos/camera-showdown-iphone-4s-sample-images/

Algorithms of deblurring are known for a long time already:

http://www.cse.cuhk.edu.hk/~leojia/projects/motion_deblurring/index.html

And yes, in research images are often artificially blurred with a known kernel ("camera shake data") to be able to control also the intermediate results of the algorithm.

The real question is how much CPU time and memory one needs to deblur a 15MP image.

35 mm equiv. for iPhone 4S, according to EXIF of the samples.