Someone earlier was trying to downplay the issue saying it was normal and overblown. Apple even told my sister in law that it was normal.
That's because lens flares are normal. It's what happens when light shines directly into a lens. Here's what it looked like on my iPhone 4:
Look at that purple on the top!
Purple on the right!
As I said before, the pics with the purple glow would have a glow no matter what. It may not be purple with every lens, but it would still be there. It's what happens when light shines into a lens. I saw Looper tonight and that movie is filled with blue light streaks going across the frame. Is that because the cameras were defective? No, that's what happens with anamorphic lenses when light shines into them.
The only reason this has become a problem is because people online have decided it was a problem. It's people who aren't knowledgeable about cameras and lenses suddenly noticing something that's always been there that they ignored before, but now notice since it's been brought to their attention. People wouldn't have given the purple flares any second thought if they didn't think it was a problem and didn't actively look for it. I can look back at my iPhone 4 pics and see crappy glows and flares all over the place but I never freaked out because I know that's what happens with light and crappy tiny lenses paired with tiny cameras in a camera phone.
EDIT: What's funny is the farther back into my iPhone 4 camera roll I go the more purple glows I find in the exact same conditions that it's now suddenly a "problem." People be ignorant.