Now the question has been moved (thanks Marilyn) I can answer it.
The iPad2 camera is not intended as a still camera. It is a 1 megapixel device, and considering most digital cameras are running at around 8 to 12 mp it is not surprising that the scope for photography is poor. I'm guessing, but I think the reason there is no flash is that it would seriously affect battery life, something that Apple was very proud of when the iPad was launched.
When you take a photograph with the iPad, you are effectively capturing a single frame of a video.
The iPad performs quite well in good light levels for video, and extremely well for FaceTime and Skype calls, but as a still camera, it is close to the bottom of the heap.
To answer your original question; no, you are not doing anything wrong. It is what it is.
Sent from my iPad using iPF