Using our sample app
and your code I was unable to reproduce your issue. The app works flawlessly even with "quality" set to 100 which is not recommended.
Would you verify that you have enough storage space because according to Cordova documentation
the photos are saved in the application's temporary directory?
We are aware of memory issues using the Camera plugin on some devices, but not with the Capture plugin.
Have you tried with another iOS device? I used iPhone 5 iOS 7.1 for the test.
You can debug your app on device
and track for any possible culprits.
If you still need an assistance consider opening a private ticket
including your app name so we can try it locally.
Share what you think about AppBuilder and Telerik Platform with us in our feedback portal, so we can become even better!