Yeah I think different cameras for different purposes, if you want to take a real picture use a real digital camera (I won't be selling mine anytime soon just cause I am getting this device) and if you want a quick pic for facebook or twitter then the iPod's camera should suffice. As mentioned before its a pain to upload a huge image from a real camera to facebook or twitter since you have to edit and resize the images.
Even if the competitors cameras (on multi use devices) boast higher pixel counts that does not mean image quality will be much better.
Even if the competitors cameras (on multi use devices) boast higher pixel counts that does not mean image quality will be much better.