Oh please, don't start that nonsense.
I've got a couple of D-SLR's and would consider photography a 'serious' hobby of mine. I'll regularly haul my D90 and lenses around on days where I've got no other objective but to get the best pics I can (well, that and see some nice sights on the way). But I've got no interest whatsoever in carrying around a dedicated camera, let alone a D-SLR, on a daily basis. That's where the iPhone, or indeed any cameraphone, comes in very handy. No, they're never going to be a match for my dedicated kit but when the choice is between taking a photo at (relatively) lower quality or taking NO photo then there's really no debate. Frankly, providing the camera you're using can provide a reasonable image then a good photographer will (usually) get a good photograph. Always amuses me how many geeks seem to think its the hardware that makes the difference.
As for HDR on the iPhone, yes it is proper HDR in that it's taking multiple shots at different exposure points and combining them into one image. That's what HDR is. In fact, frankly, I prefer the iPhone approach of using that technique to provide a better quality picture than the massively unrealistic crap that has flooded the web since the technique became popular. Don't get me wrong, HDR when used by someone who a) knows what they're doing and b) has an eye for composition is spectacular but sadly such images are few and far between. Using it on a cameraphone is a great idea and, in my own experience in situations where HDR should be able to help an image, it works very very nicely indeed.