The 4S camera (video and stills) is amazing. The ability to instantly edit and share is a huge bonus too.
But just to play devil's advocate, there are some good arguments for having an inexpensive but decent-quality point and shoot, especially on vacation, or if you shoot a lot:
- even a fairly modest point and shoot has a larger aperture lens and optical zoom, both things the tiny iPhone camera lacks, and which can get you better pictures than the iPhone. Step up to one of the better ones, and you will get much better quality than even the iPhone 5, especially in low light, where that tiny lens just can't pull in enough light.
- You spare your phone's battery while shooting, and can even add an extra battery to your camera bag. If you're out all day, this will save you a lot of lost shots.
- It's very easy and cheap to add large capacity memory cards. The iPhone lacks any removable storage, so if you want to "unload" it to make more room, you will need your computer or you'll have to wait (probably a long time) while your photos and videos upload somewhere. Popping a new memory card into your camera takes seconds.
- It's a relatively small financial loss if you lose or break your point and shoot (very good ones with as good or better image quality. A much bigger and more inconvenient loss if you've also lost your phone.