Well, this NY Times story doesn’t surprise me too much:
Casual users don’t care about ultimate quality… they care about ultimate convenience. Sure, you’ll get a better picture with a dedicated point and shoot, but think of all the extra steps it will take. First, you have to remember to take your camera with you. People usually prioritize a cellphone, but a separate camera is harder to remember in the first place. Then, when the picture is taken, you can’t immediately upload it to facebook or email it to a friend. You have to go home, plug it up to the computer and then upload it – and you may even need to resize it before doing so.
Good bye point and shoot cameras, it was nice knowing you!