Yes that is pretty sharp. I took it into Photoshop and blew it up to 600% and could see only very little sharpening. I's say there is definitely something wrong with the other camera. These things are supposed to produce sharp photos for the casual shooter.
You might try going into the photo shop with your own memory card and shoot a bunch of stuff with differnt cameras then take your card home and load the shots into your computer for comparison.
Mercy: Here is a picture taken in the same lighting and about the same physical dimensions with the 5mp camera set at 5mp normal. Notice the plywood on the right; it's all blurry. Notice the grill and the other stuff under the deck. I also resized to 50% and compressed @12.
