The thing about camera on phones is that the pictures you take with it look great while viewing it on the phone itself. Just wait until you up the resolution and screen size by viewing it on a computer or TV. Pictures will start to look tad bit grainy. Take a normal digital camera and do the same. With this scale, you can then easily see the difference. The digital camera will always perform better somewhat. Unless you got a cheap digital camera years ago....
I don't get why many people are saying that the iPhone triumphs the normal digital cameras.
The iPhone takes GREAT pictures while on the go and if you don't mind the quality compared to a digital camera. If you're a serious photographer, at the very least get a decent digital camera.
Enough said. The iPhone 4S picture quality isn't that as bad compared to digital cameras- it comes close enough. Under certain lighting conditions (for me, i think the iPhone takes great outdoor pictures especially scenery) , the iPhone can take clear, crisp enough photos.