Yep, the camera on iPhone 5 is superb, comparable to some P&S cameras out there, maybe even better than some I owned in the past (especially for low light conditions).
I still have my DSLR and mid-range P&S cameras which I bring along when I travel or there's an event, etc, even with HDR mode on the iPhone still has difficulties taking photos in tricky conditions.
The iPhone is convenient especially when you take photos with a bunch of people and they want you to share them, you can just do it on the go as opposed to having to load them onto your computer etc.