OK, I'll bite: please provide details of a review, by a reputable camera review site like DPreview or equivalent, where a current cellphone camera has outperformed a current compact camera of the same megapixel resolution (i.e. no comparing 6-year-old compact cameras to current cellphones). Go on, I challenge you...
Fine. But you need to think and look at the wider picture and stop believing everything Jobs tells you.
As a camera in the phone, you are looking to compare it with $100 compacts, nothing high end.
Now sales of camera phones overtook digital camera in a corresponding curve in 2003 in Japan/Asia and 2006 in Europe (Forbes). Canon and Fuji have all scaled back their compact range as it is being so heavily cannibalised by camera phones. Furthermore Olympus have fully withdrawn from the compact market and are teaming up with mobile makers as announced at WMC. They are all now pushing the higher end compact, hence Canon's 6 SXs the other day and D1000 etc. This was coming out of articles as far back as 4 years ago:
http://www.digitalcamerainfo.com/content/Camera-Phones-Outsell-Digital-Cameras.htm
The man with whom Steve has negotiated iPhone exclusive deals in the UK (thought that might get the ears going) states the camera phone market is killing the lower end compact camera market:
http://www.cpwplc.com/phoenix.zhtml?c=123964&p=NewsArticle&id=1080655
Now, as for comparisons, as you should know DPReview doesn't do cameraphones, so there would be no comparisons to see there! Besides, they do serious photography to nerdy detail. Your average Flickr/Facebook uploader doesn't check that out! However there are numerous articles to be googled about Sony Ericsson's K850i vs low end compacts.
But what about a CNET review of camera phones vs compacts and a Canon 400D DSLR? Intrigued? You may be surprised at their findings:
http://crave.cnet.co.uk/mobiles/0,39029453,49289927-1,00.htm
David Pogue, an Apple enthusiast and photographer - who has frequently bemoaned the iPhone's camera - has reviewed phones he thinks give better results than compacts out there.
http://www.nytimes.com/2008/12/04/technology/personaltech/04pogue.html?pagewanted=1&_r=1
Convergence devices are the way. The mobile phone market - with the iPhone which was inevitable - is rapidly eating the mp3/4 player, but long before that it was killing the compact/ultra compact digital camera market. Remember, outside the US, the available mobile phones are 1-2 generations ahead in features and network speeds (nowhere beats Japan/S Korea though).
Finally, DPreview does have many forum threads, but this one might interest you with the comments from senior members of the forum:
http://forums.dpreview.com/forums/read.asp?forum=1001&message=30783406
Believe it or not, I want Apple to succeed and I want a great device. It's as an enthusiast, not a worshipper, who makes a reasonable, sensible suggestion with knowledge of the wider market of what is possible to achieve an improved machine. I'm not asking for anything major, simply an upgraded phone with small flash and autofocus; I am no idiot who thinks a 12MP mobile can out perform a DSLR or 6MP compact.
But when the phone is universally pointed out by reviewers of phones as having a poor camera for the price point and compared to its direct competitors, it would be blindness to ignore it.
I am criticising one aspect of the iPhone. Not your mother. Stop taking it so personally. Take off the Apple shades and look around at the wider tech world and business. The Pre looks very promising, but by the end of this year, there will be an Android phone (probably Samsung's) that would seriously compete with today's iPhone 3G. Apple will need to move the game on again by the end of the year.