Depends on the level of photography you want to do. Yes, at the moment smart phones dominate the casual photography world and have made, for the moment, point and shoot cameras completely obsolete. But they’re a massive trade-off if you’re serious about photography. Even enthusiast photographers will outgrow the iPhone’s camera system very quickly.
So the argument that most people use a phone camera isn’t saying much. Before digital most people used cheap disposable Kodak cameras. For the vast majority of people image quality and editing are not part of their priorities. They just want to snap pictures and move on.
Right now there are options for serious photographers, though not to the extent of a few years ago. There are maybe a half dozen compact zoom cameras still on the market and a few decent fixed focal length compacts. Then there are reasonably small and portable APS-C MILC systems like Fuji X.
And just watch. Camera phones are the “thing” now but there’s a good chance that point and shoots will make a comeback of some kind in the next couple of years because even the cheapest dedicated camera will make better images than a phone camera. “Computational photography” can never match a lens that can gather many times more light than the ones on phones. There are enough enthusiasts around who want a better camera than what’s on their phones that the industry will eventually have to address that under served market.
