I have an iPhone Xs Max. The behavior you are describing is normal. I use the camera on my phone for pretty much just two scenarios: (1) taking a picture of my car in a parking garage so I can remember where I parked it (say at an airport before a trip) and (2) taking a picture of the trip odometer and gas pump display each time I fill up my car with gas so I can then calculate MPG (I have a Honda Accord Hybrid and the car's calculated MPG is usually low by ~1 MPG). That's pretty much it. For anything else I use one of my "real" cameras.
Phone camera tech has come a long way, but it is still pretty bad compared to a dedicated camera. I've read that phone camera quality upgrades are a driver for phone upgrades. Reviews of new phones often place an emphasis on how the camera compares to previous models or the camera on different brands. For me and my photographic needs/standards, that's like saying this pile of dog poo is slightly less smelly than that pile of dog poo. They're both crap.
As stated by others, physics is physics. Apple has done an *exceptional* job improving the quality of pics taken with an iPhone. In some ways it seems like magic. I have an app that lets me save RAW images from my iPhone and I stopped using it after I noticed that Apple's software manipulation for their JPEGs is far better than what I can achieve manipulating the RAW files. And seeing the RAW files and how atrocious they were gave me a huge amount of respect for what Apple has managed to achieve in software. The expression of making chicken salad out of chicken **** comes to mind....
But the physics can't be denied. Small sensor, small lens, low number of photo sites (the latter being constrained by the need for *quality* in the photo sites that the physically small sensor can accommodate).
I get the argument that the best camera is the one you have with you. But phone cameras are tools and they have very real limitations. It is certainly possible to create pleasing or acceptable images with one assuming you are shooting something that plays to their strengths. But the output will almost never (I would actually argue a stronger statement of *never*) equal or surpass what could be achieved with a dedicated camera in the same scenario. Your examples support this. iPhone files do not stand up well to cropping (i.e. digitally zooming in) or to making significant adjustments in post. They can't because the data simply isn't there or isn't of high enough quality (i.e. signal to noise disparity). The JPEG files have already been optimized in-camera with Apple software which leaves relatively little room for tweaking in post without the introduction of artifacts.
I use a GoPro Hero7 Black fairly extensively for taking pics of my son around and in our pool. I am almost always disappointed in the quality of the files and it sometimes takes Herculean efforts to salvage them. But I continue to use it because it can capture pics that I couldn't achieve with any other camera I own (i.e. underwater). Some (many?) of the pics I can't salvage, but it's worth it for the ones I can.
All of this needs to be understood in the context of what your intended output is going to be. If you are routinely needing to crop images from your iPhone to get details, then the iPhone isn't a good tool for your needs. If you are routinely not needing to crop, then the blur, softness, or in your words "pixelation" (which isn't actually accurate) won't matter. For sharing online if the images aren't cropped, most people won't notice the softness of the pic. For small prints, it may not be noticeable either. For professional prints or enlargements, it may very well be noticeable. Your intended output and audience can matter in what constitutes "acceptable" image quality.
Finally, the three most important elements of photography are choice of subject, composition, and light. Exposure is a very close fourth. If you nail the first 3 (or ideally all 4), the viewer is likely to mentally ignore minor errors in things like sharpness unless there are significant digital artifacts present (especially ones in a pattern, which our brains are really good at recognizing and bringing to consciousness). For any photographer of any level and using any gear, getting better at subject choice, composition, and light will have an incredible impact on your images that can't be overstated. Often more important than the gear you are using (unless the gear is vital to the composition/lighting/exposure).