Thanks again for all the replies

. Never thought about doing videos and taking bits from them...will give that a whirl next time I forget my camera. Just want to make one thing crystal clear - at no point in this thread have I blamed it on the kids - sorry if it sounded that way.
Nope, you definitely did not blame the kids.
You got a lot of advices from this threads, many of which I do not agree with. Below are my take on the iPhone 5 as a camera.
First, a bit about my background. I started with film SLR, moved to expensive digital point and shoot, then digital SLR. I own quite a few good lenses (cost many times more than the camera). I am very critical when it comes to image quality. I have spent an hour editing a single photo on occasions.
I find the iPhone 5 camera more capable than a point and shoot I owned a few years ago. It focuses really quick, has decent photo quality especially in good lighting, and very acceptable quality under less than ideal conditions.
Can you take good photos with it compared to a good point and shoot? Yes you can. Its weakness is flash photography: tiny led. With a good point and shoot (P&S) you can freeze the action with flash at reasonable distance. With the iPhone 5 the flash range is pretty short.
However it's a moot point to me because I usually don't like flash photography unless it's done with a much more elaborate flash system which can only be trigger by an SLR camera so that the effect is not deer in the headlight. I normally turn off the flash on the iPhone 5, but some time I use it as a fill flash.
With the flash turned off, the iPhone 5 camera is quite capable. It has a f/2.4 lenses which is a really fast lenses by any camera standard. If you go out and get a entry level SLR that comes with a lenses, undoubtedly what you get is a f/3.5 - f/5.6 or slower lenses. A 35mm f/2.4 lenses would set you back a few hundred dollars at least. Most people who walk around with an SLR would have a lenses much slower than the iPhone 5 on their camera. Add to that the fast focusing and start up speed, what you get is a very capable camera for natural and ambient light photography. Learn how to use it and it may be all you will need for snap shots.
Just practice. Start with shots of static objects under different lighting condition. Experiment and don't be afraid to break the rules. You got nothing to lose. Shoot with your back against the Sun, facing the Sun, side light, in almost complete darkness. Sometimes the best photos are technically poor. At times to illustrate real life you end up with a blurry photo. There is nothing wrong with that. The worst you can do is to stick with deer in the headlights flash photography where every shot is posed. Go crazy. If you don't like the photo, hit delete. But be careful because what you deem to be an insignificant blurry shot may be the one that you cherish later on in life.
The best thing about the iPhone 5 camera is that you are more likely to have it with you most of the time. Learn how to use it well and it may be the most important camera you own no matter how many digital SLR bodies and lenses you have at home.