I'm thinking it's more about video than stills, and you will be able to take amazing high-quality video with this camera. And I do believe that people will be using cell phones for much more than make calls and sending text messages (although that's obviously Job 1).
I have an iPhone and I use my phone for all sorts of tasks besides calling and texting and I used a Nokia N95 last summer for a few weeks with a 5.1 megapixel lens and video capability and it was great fun for videoblogging. I think the phone cameras are just beginning to catch up with the idea of having a video camera in your pocket and I see it driving all kinds of new social media and citizen journalism.
Ron Miller