I have found that I'm using my IPhone 4s more for everyday everywhere pics until I decide whether to upgrade from my Leica D-Lux 4. The IPhone is smaller and goes everywhere with me, the Leica D-Lux 4 is larger and harder to put in ones pocket. They both take good pictures, the Leica takes better low light photos and has a good built in flash. The flash on the IPhone is marginal at best but can be enhanced by upgrading to one of the many camera apps available. Here are some pics taken with the IPhone.
I'm happy with the pictures that I get from the IPhone, I do wish that they could be saved in Raw rather than jpg. Any way I will continue to shoot with both cameras until I can decide what my next step will be.