While I was away, I used both my camera phone and regular camera. With the camera phone, I could upload straight to my Flickr photostream with the only adjustment being one for size (once I learned how to do that). I read a forum post where the people were putting down camera phones as useless and better to not have any photo than that of a camera phone.
Here is a comparison for you to peruse.
Camera Phone. Indiana Dunes State Park.
Canon 10D with wide angle lens, Indiana Dunes State Park.
For me, a camera phone picture will always be better than no picture at all. Not perfect but what really is? Many of the comments reminded me of the early days of digital and film debate. I'm sure many of those same people never thought they would be using digital. A phone is still a phone but why not have more functions built in?