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.

Agreed 100%.

iPhone 4S… slow and jerky focus. Often takes multiple tries to get the image in focus. Zoom basically requires two hands. Tiny, mediocre optics. No lense protection, so it gets schmutzy if you keep it in a pocket. The LED “flash” often reflects off the phone case and leaves odd shadows on the image.

A real camera kicks its ass up and down the street many times over.