AFanBoi

Registered just to make this comment..
It's hilarious that a majority of the comments on this post (and actually the post itself) have no idea of the actual issue trying to be addressed by Google.
The issue is compression due to MMS (or multimedia message service) a messaging standard used by mobile devices to send and receive messages. iPhones use iMessage (an apple proprietary standard) to send messages to other iPhones. However, apple, in their walled garden autocracy, does not permit other manufacturers to use this standard in their messaging app. Because of this, when an iPhone user sends a message to a NON-iPhone, the message will use SMS or MMS to transmit the message (SMS is used for text only messages, 160 character limit, no multimedia, MMS is used for over 160 character messages or if multimedia i.e. image or video is included). The issue is that MMS has a file size (usually defined by your mobile carrier and usually around 300kB) so the image sent by the iPhone to an Android phone (which would use MMS protocol) would be compressed from it's original size and quality to a pixelated 300kB mess.
This has nothing to do with "our cameras are better" or the aforementioned "Photo Unblur" feature (which uses machine learning to apply filters and smoothing to an image) ALREADY available on Pixel devices.

Yes, the use of blue and green bubbles was silly as this is not how it would actually look on Android, however, this is part of their marketing and is simply used to differentiate the iPhone user from the Android user. 

Sources -
en.wikipedia.org/wiki/Multimedia_Messaging_Service
support.apple.com/en-us/HT207006