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Another example for The Innovator's Dilemma.  They just have to be good enough for Point&Shoots to fall out of favor.  And of course that ignores the benefits of smartphone cameras for sharing and annotation and editing.

It's useless to have 3 devices on you, one to play music, one to take pics and one to call people. A cell phone taking 5mpx pictures, 720p videos, with minimum 16gb of memory for music and have the abilities to call and go on the internet, that's the dream.

And it's available now. No need of more devices in my opinion.

I know. I have a Droid and I love it, but doing some things on it is still tedious. I was thinking of going back to just a regular phone, no bells and whistles, and getting an ipad and a point and shoot. Heck the p&s's nowadays are pocket size and the ipad is big enough to actually read (for those of us middle-agers) and type on (for those of us with fat fingers).

My cellphone camera takes great pics outside on a sunny day but totally sucks in low light. But then my last phone which was not a smartphone, the Alias, had a flash on the camera. Not sure why I pay twice as much for a smartphone to get a camera with no flash.

I see see us all with full HD video and camera options built into our contact lenses uploading continuously to our key fob mainframe.

The point and shoot I'm lusting after is the Canon G-12, so maybe when a smart phone shoots RAW I might consider it.  Otherwise, I'm OK just having my simple basic phone for emergency calls. 

Over two years ago the daylight balanced mini flash was announced, touted as making it an addition to cell phones. I haven't seen it in production, but they are already developed. I was searching for Xenon flash tubes for an old strobe unit and came across the article. Actually I'm kind of surprised that they haven't appeared on phones yet, now that you mention it.

I may have to buy a cell phone with a good camera, instead of one that makes phone calls. I'm a dumb phone user, pay by the minute, which runs under $100 a year total for my cell phone usage. Obviously I don't text, and don't make many chatty conversation calls. (just pizza pickup and emergencies...)  I still want a bumper sticker that says "Shut Up and Drive" but they already have some for a campaign against texting, which is even more shocking to me, that people can look down and text while driving, when some people can't even drive and talk at the same time without having an accident!

OK I'm guilty of driving with one hand and snapping pictures, I shouldn't protest too much? 

A couple of years back I uploaded a couple of photos taken from my mobile which were also upsized, to a few agencies. To my 'Big' suprise one of the top 6 agencies accepted one of them, the other was rejected for compositional reasons. I've since taken the image off.

Give it a couple or three years. Cameras like the Panasonic GF and Sony NEX will be smaller, more refined, and cheaper than they are now. And by then Canon and Nikon will probably have gotten off the sidelines and started producing similar products.

One of these phone manufacturers would be smart to make a phone geared toward photographers. There are a gazillion pros and amateur enthusiasts who would go ga-ga over something like this.