Flash: nice.
5 MP: meaningless, since the lens is still tiny and ******, so the pictures will still suck.
My first digital camera, a 2.1MP Fujifilm, took pictures infinitely better than my iPhone does, in spite of being the same MP rating. It's all about the quality of the lens...
The number of megapixels isn't meaningless but I agree it's way overhyped. Image quality is a result of lens, number of pixels and CCD sensor.