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The camera software of the Mi5 applies a stronger noise reduction but unfortunately the blurred parts on the right side are caused by the camera lens, so that cannot be made better by software updates.
Beside some other features (and because it's a new model), primarily the twice as much RAM capacity 6GB vs 3GB), the bigger and OLED screen and the significantly bigger battery makes the Z1 Pro more expensive but the Mi5 obviously has a better camera with higher resolution and OIS. So you can't expect the same quality.
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