It is not a flaw with the iPhone camera but rather a limitation of the optics of the camera lens that causes chromatic aberration. This is a well-known phenomenon that is is most prevalent in high contrast situations with any camera (unless you spend $$$ for a high-end lens). Taking a picture with the sun high overhead against a dark background is an excellent way to highlight chromatic aberration. The advice from Apple Support is correct in that the user of camera should recompose their picture rather than stir up controversy with blog posts. You'll also note that the pictures on the link are similar but not framed quite identically, which exacerbates to chromatic aberration. And I won't even get into the ridiculous comparison of the fixed focal length iPhone cameras with a professional level Nikon D300.

For a more detailed description and how to avoid it (or fix it - perhaps with iPhoto which is likely installed on your iPhone)
http://www.tutorial9.net/tutorials/photography-tutorials/correcting-and-preventing-chromatic-aberration/

One of the security "features" of SP2 was the insistence of choosing to automatically update your system. What is the likelihood that Media Player and the MSN Music Store will be considered "critical" and will automatically be installed? And experience has show that MS would never do such things...