I've been a staunch supporter of the iPhone as an amazing camera since the beginning, and it's only gotten better with every model.
I'm even a co-instructor of some
popular online courses in how to take better images using a mobile device. The future will most definitely require journalists to be both reporters AND photographers, and I think upcoming models of the iPhone will definitely be the right tool for the job.
That said, I just don't think we're quite "there" yet, and I agree this is a dumb move (at least right now). Not only does the iPhone's camera capability need to be a little more advanced than it is currently, but you can't just expect non-trained journalists to have the necessary photographic eye to take the RIGHT kind of pics, and do it well. It's one thing to BE THERE where a story is unfolding with a camera in hand, and it's a completely
different thing to know how to best CAPTURE that story in a clear, concise manner that gets the full meaning of the events across.
One of the mobile workshops I teach is actually a documentary/journalism class -- and even students who've had previous practice with regular cameras aren't always able to easily capture a "news" story well with an iPhone. It takes a lot of skill. And while it CAN be done, a trained photographer with a more professional camera is STILL going to take photos that are infinitely more appropriate, compelling and attention-grabbing.
I DO think training people to be both reporters AND photographers is inevitable, but it needs to happen more naturally and not be as forced as this.