Cell phone cameras have not rendered good cameras obsolete, though they have by and large relegated pocket cameras to the dust bin of history, except for the fact that the flash on them is either useless or non existent.[/quote]
About 2 months ago I was challenged by an iphone 4S user to a photo contest against my cheapy point and shoot (easily pocket size) Panasonic Lumix in somewhat low light conditions.
The iphone pic was barely discernible, whereas the shot with my Lumix was pretty good (particularly if I left the shutter open for a few seconds).
I still think a decent point and shoot has it’s place and is much better than any cell phone camera.