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The evidence says otherwise.
..like h2o just said it's hardly "evidence" that everybody and their mother is taking pictures with their iPhone now.
As I said: I think for some tasks phones are very suitable - for a lot of others they are not.
Aside technical limitations - what you call "traditional handling" is actually pretty important for people who are photographing seriously.
Some really want a camera with focus / aperture rings, dials at just the right places etc. - this is very very different to tapping around on an iPhone screen.Just had a look how this tedious argument started in the first place -
it was you stating that compact cameras are all of a dated concept now that phones are so good.
Which is true, from the standpoint that a lot of people today do not buy a compact camera anymore as they're happy with their phone.
There are fewer and fewer people who need / want / appreciate the advantages of a real camera, even if it's just a compact one, so yeah.
The evidence says otherwise. I'll find some links...
http://petapixel.com/assets/uploads/2015/04/chartwithsmartphones1.jpg
https://www.flickr.com/cameras/