There's plenty of coverage for the latest Apple iPhone announcement so my round-up is not needed. However, there seems to be very little excitement about the new camera. Most of the press seems to be disappointed. I look at it differently. If Nikon announced a new point and shoot camera with f2.4 and 8 megapixels that could remotely post to any photo service and generate greeting cards, the media would probably go nuts.
I use my iPhone 4 as a music player, camera and GPS unit. I rarely use it as a phone. I plan to get the 4S just because it's a better camera and a faster GPS device (A5 dual core). I don't think I could ask for much more than that out of a new iPhone.
I have a DSLR and an iPhone 4. 90% of my photos and videos are taken with the iPhone. It's the device I carry everywhere. It's not bulky and awkward to carry. I can edit and send photos directly from the iPhone. It's the best camera I have. I only use the DSLR for special occasions and when I want to use my f1.8 lens. The iPhone 4s camera will give me more options and probably take over even more of my photography work. An f2.4 lens in a phone is just amazing. If a future iPhone gets an f1.8 lens then I doubt I will ever use my DSLR.
I recently digitized a large number of my childhood photos. One thing that stuck me was how bad photo quality was in the 70's. Many of the photos were Polaroids and either did not age well or were never very good. Here's the thing: they're still great memories. What makes great family photos are the memories not not the camera. Of course blurry and out of focus photos are still bad, but grainy and washed out photos of my 4th birthday are still nice to show my daughter. My iPhone camera has enabled me to capture a lot more of those memories for my daughter.