So after a 3 month wait I finally took my 330d into the dealership to get the faulty reversing camera replaced. At the end of last year, the image had become 'greyed' just like a thick foggy day. I went to the Service Dept. and the workshop foreman came out to have a look at the problem. I selected reverse and showed him the poor image. So imagine my surprise when he turned the iDrive controller and all of a sudden, the image became crystal clear with vibrant colours. All he did was adjust the contrast, which had been turned to minimum. How embarrassing! But all sorted in a couple of minutes. I'm thankful that they never got around to doing a diagnostic check, as that would have been expensive. I don't recall ever changing the camera settings. Oh well - lesson learned.
A quick update:- Thinking about it, the fault occurred immediately after the car was serviced in December last year. So what's the betting that the dealership were the ones that changed the settings when they were doing a vehicle check. Odds on favourite.