in the end, i guess it depends on your needs and what you perceive to be acceptable quality. i use the iPhone when i have to or if i want to post something to Facebook or twitter instantly. however, when i travel or when i know i'll be taking a lot of pictures, i will always tote along my dslr and/or my p&s. as mentioned before, optical zoom and low light handling are big concerns for me. and for the record, 3x zoom is much better than no zoom at all.