Just got my HTC Touch HD...

Megapixel mental, but still with a miniature lens that is going to let a poor amount of light through. Basic photography is just "get as much light as possible".

It won't be for a while, but for camera phones to stand a chance at seriously replacing cameras even for casual shots that need to be kept, the lens need to be bigger and optical zoom needs to appear.

No-one in their right mind will ditch their camera on vacation for example.

I'm not "of sound mind" though, I think we could agree. I have (had) a DSLR and collection of lenses and liked spending some time taking 'proper' photos. Now, I don't give a shit. If I could get Canon Ixus type shots from my phone I'd be happy. I can't, so I make do with the best I can get.. which is the Sony I have at the moment. It works ok in daylight and has a proper flash for drunken club pics. It's not the best but I refuse to carry a camera AND phone when cycling and often now when going on short trips too. It's Mal's Ixus so I don't always take it and my 10D is unused.
If thy made a K995, ie. camera-focused version of the current best sony then I'd probably get that. But they've made the camera shittier than mine (forgetting the MPs for a bit - you just get more pixels of shit).