I'm not so sure about the 12-megapixel camera.
We're probably approaching the point of minimal additional benefit. Cellphone camera lenses are very small and 8-megapixels is probably around the limits of resolving power for such a small lens and sensor. Even if you increased the pixel count, you might not be capturing more detail because of the resolving power (which is finite). Furthermore, more pixels risk increasing digital image noise.
More beneficial would be improved sensors, especially in regard to low-light sensitivity as well as power consumption.
Also, more megapixels mean larger file sizes, which translates to longer network transfer times.
I agree, but people tend to "lap up" digital camera MP specs like they "lap up" GHz specs.
5MP is more than enough for the kinds of optics possible with such a limited amount of space IMHO. I would rather have a really fast sensor that is good in low-light as oppose to one that generates really large crappy images.