Software does matter. My old SGS1 without flash takes better indoor, lowlight, and nite scenes than my current SGS2 with flash. I think, by using flash, the software dumb itself down by setting standard exposure, aperture, and shutter speed, rather than adjusting to the scene. SGS2's included programmed scenes & white balance modes never really match to reality, so I ended up using basic mode mostly. :-(
It seems that SGS3 has improved flash mode. Hopefully, lowlight and nite modes are also better.
One shooting mode that is reliable is panoramic; amazed all my friend with iPhones. :-)