Indeed, same with the oppo find 5, however, Samsung are generally always much better than the other companies when it comes to the software optimisation for the camera.
The software has always let the nexus phones down, biggest difference was with the nexus S compared to the GS 1, both same hardware iirc, however, the NS looked horrible in comparison, especially the video recording.
I haven't seen the XZ with that update yet, will try to check one out that does have that update, what version is it?
That is just my opinion
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Yes it is sharper and text looks better and you have more content fitted in, but it is only really noticeable when it comes to browsing. I can't stand even slightly washed out screens where colours etc. start to go as soon as you view from a certain angle, even the smallest I found. My friends nexus 4 has much better viewing angles and doesn't appear as washed out. Also, last time I looked at it, the blacks were beyond awful, most of the screen actually turns to more or less white once you viewed it from a certain angle, has that been fixed/improved? EDIT: And this was in brightly lit conditions so in dim/lower light and especially dark (i.e. when in bed at night) conditions it would be more noticeable.