as far as i know, all digital cameras record the amt of pixels on the CCD and that's fixed. so a 3.2mp cam will record 3.2mp worth of picture, it's wat size the STORE it at. so if u want to take 1mp pics, the cam will still take 3.2mp, and store at 1mp by resizing in the cam.
so it really depends on the algorithm of the cam vs the algorithm of the software on ur computer for the downsampling. which algorithm is better? i wouldn't have a clue. but this is the logic i take:
a 3.2mp cam can cost as low as 400. photoshop costs 900 (or more) and is a software for doing photos and digital imaging. i would rather trust photoshop, than the cam, where the optics and ccd contribute most of the cost.
but of course that's just my views.