this is how i 'scan' all my traditional art. with things like watercolors, it works just fine. only gets iffy when it comes to heavy pencil/ink/paint drawings that reflect the flash a lot, but even then, there are ways to get around it.
with my camera (8mp) i take a good sized picture, open it in photoshop, adjust the lense distortion and rotate it, and everything works out fine
The program and resolution have nothing to do with a picture looking washed out. Higher resolution just means the picture will be physically bigger to look at (and a bigger file size).
You will need to alter the picture after it has been scanned to make it look "normal".
You will need to change the levels of shadows or colours in the picture, and that is where your image manipulating program comes in.
The best tool at your disposal, imo, is the curves tool. Use of that can be read about here: [link]
You also might want to try "auto level" and "auto contrast"
Try searching DeviantArt's tutorials: [link]