Thought some folks might find this interesting. I know in the past the topic of cell phone cameras has come up, and it's interesting to see how they're advancing relatively quickly from extremely poor photos just a few years ago, to images that are getting closer to matching basic point-and-shoot cameras.
Below is a link to an article about the new 5MP camera and video feature on the iPhone 4 about to come out. It gets a little tech-like at times, but has some interesting info that might inform about cell cameras in general, how more pixels don't always mean better photos, etc.
I'll make the prediction that once they're able to figure out how to include a basic image stabilization feature and put a decent tiny optical zoom lens into cell phones (they've experimented but it's not ready for primetime yet), then cell cameras may one day, replace most point-and-shoot models for most people. At that point, the market will probably be mostly for specialty models (high zoom cameras) or more pro models (DSLRs), with cell cameras taking over the basic carry-around point-and-shoot category. I give it let's say, 5 years before we start to see this really happen (open for discussion).
Link to article:
Sizing up the iPhone 4 for shutterbugs