I don't think there is any debate here.
It's like saying that the pencil and napkin I have in front of me is inferior to a sketch book and graphite pencil I can get at an art store.
However, a lot of beautiful rendering has been done on a piece of napkin like this. Sometime I actually enjoy pushing the limit of what I can I do with a simpler tool. With the iPhone the limit is pretty high, so it doesn't feel as much a compromise as point and shoot camera used to be.
As a photographer I don't remember the last time I refer to a camera as "suck" as I would not refer to a pencil the same way. Objects don't suck, but operators may.
Lots of words for no debate.