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Sadly it seems that Apple has WORSENED the quality of the camera (through software) on the iPhone 7 and 7 Plus, by applying overly aggressive noise reduction to photos, noise reduction that need not be applied at all.
There's a thread about it on the Apple Discussion Forums: https://discussions.apple.com/thread/7691303. After checking my phone and comparing images with those from the LG-G3 and LG-G4 Android handsets, it's highly apparent.
The camera on the iPhone 7 many be great, but the photos from it are not, at least not with the stock camera app.