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Android 4.3 update will improve camera qulity in auto mode or not ?
How do we know this ? Sony doesn't publish changelog of oficially RELEASED firmwares neither. So know what will, when it will...
BTW, 4.3 for XSP still isn't officially confirmed yet...
Besides, also not certain that "quality" of camera shots have software solution...
don't get your hopes too high 
i doubt the issue will be fix..
+1 It won't improve.
Some of the problems are caused by the tiny, noisy, substandard image sensor. Let's hope the second generation Exmor RS is better.
The rest are caused by Sony's image processing philosophy (smearing, oversharpening. yes, both in the same image!) and I don't think they will suddenly change this.
I must little correct my opinion on Exmor RS... Same chip uses Alcatel One Touch Idol X (but 13Mpix version) and quality of shots are very very good. Look at some of the reviews on web...