I'm not an iPhone user/fan or anything, and I don't really see what the big fuss is.
Well, you have to keep in mind that the majority of cameras will be susceptible to lens flares. The "big fuss" is that unlike most cameras, the iPhone 5's lens flares
almost always have a purple hue to them. In most cases, lens flares on other devices will just be white, which is fairly normal. I've taken shots using the iPhone 5, iPad 2 and ASUS TF300, and it's ridiculously easy to get purple flares on my iPhone 5. However, it's rather difficult to get any purple hazing on the other two devices. So far, I've only been able to get slight pink hazing on the TF300.
Now, you'll have to excuse my poor photo compilation skills, but these shots that I took earlier should give you an idea:
http://i.imgur.com/5DRHs.jpg
If you look, there is some slight pink hazing at the top of the right TF300 photo.
Oh, and if you want to read more, the issue was first brought to light (pun intended) on these forums. So, if you want to read more and see some interesting photos including a panorama shot with purple flare within the image, check out the Apple sub-forum thread.
EDIT:
Oh and in case you're wondering, the left set of images are taken pointing at the ASUS VG278H monitor that you see in the right set of photos. The lens flare is caused by my Dell U2709W monitor that's off-screen in both photos. These were all taken with the overhead lights on (the ones that I used for the flare in the right photos), but it would definitely be more pronounced with the lights off.