FWIW, there are many smart phones with much better cameras than what the iPhone 4 has. Nokia and Sony already produce smartphones with very good cameras that rival point-and-shoots.
It's all about light and the lens... and no smartphone matches a point and shoot because irrespective of the megapixels if less light is going through a (much smaller) lens then there is less information to work with to make a picture.
Megapixels != good cameras, a good lens does more than extra MP.
And the iPhone3, Nexus One, Nexus S, Blackberry Torch, Samsung Omnia 7... and not one of them comes close to the 6 year old Panasonic DMC-FX01 that I've bashed up so much that I am willing to carry it in my jersey pocket when I go mountain biking.
In low light or fast action, smartphones fail. In ideal conditions they're adequate, but so much happens outside of ideal conditions that I'd rather have my bashed up point and shoot at hand.
Yeah, the iPhone 4 is ok for basic pictures. I hate how long it takes to find the Camera app and then wait for it to load before it can actually take a picture!
Why can't the iPhone allow for a "take a snap" button? Or do we have to wait for the iPhone 5 for this?
@spicyj -- it takes worse pictures than a point and shoot. Much worse. MP doesn't equals good quality.
However, I like my iPhone's built-in camera, because I always have it with me. But I doubt it will ever replace my SLR, or even my point&shoot (you just can't have good lens in such a small device).
