I doubt it; since the update will not magicly change the lens on the phone. It is what it is. The fact is that the update will not change the hardware on the phone.
Hardware isn't the only way to zoom if you don't know. There is DIGITAL zoom. Not as good as optical but zoom is zoom. I hope they will add this sometime in the future but I doubt it will be soon.
Unfortunately, the answer is almost definitely no. There will be no upgrades to the camera or camcorder.
During the last Sprint developer webcast, I asked about this and the answer was "There will be no additional features for the camera. It is pretty much a point and shoot thing". Straight from the horse's mouth.
when updates come will there be a update so you can zoom in and out when taking pictures
The camera on Instinct's phone doesn't have optical zoom option. It takes 2 megapixel pictures. Once you take the picture however, you can zoom in on the picture on Instinct's screen by going to My Photos and then clicking on a picture and then click on the maginfying glass icon and then sliding the slider on the left towards + sign. This will let you zoom in on the "already taken" picture on Instinct's screen.
There is a very valid reason to have an optical zoom on a phone. You may want to save or send the picture before going home to crop it on your computer. I never use it on my "real" camera, but on a phone I would use if often. Alternatively, they could add simple photo editing so images could be cropped later.
It's cool thatI can zoom in afterI take a picture, but it seems pretty pointless that I can't save the zoomed picture. What's the point of zooming in after the picture is taken if I can't keep it zoomed in? I don't get it. It's a pretty dumb feature (or lack there of).