You are daily driving an iPhone 1?!?!?! But to answer your question, yes the iPhone 5S will make a solid camera. My iPhone 5 is my primary camera. Which it sucks in low light it's an otherwise solid camera. Not as good as a decent point and shoot but good enough for my uses. I'm not going to carry around a camera so I'm very happy the iPhone has a good camera on it.
My P&S is dying, so I'd like to just my phone. At the moment I use my 4S for daytime shots and P&S for sports/night time shots etc. I'm hoping the 5S is decent enough to replace my P&S. Hopefully the dual flash sorts out the low light issues and the red eye problems. Lack of OIS is a bummer, but addition of burst mode is good. I'd really like to read a comparison of the Z1 vs the 5S, to see which has the better camera, that will sway me.