I like to think of my iPhone photos in the same way I would think of a Polaroid...

"I like to think of my iPhone photos in the same way I would think of a Polaroid or a throw away plastic camera. They are fast, efficient and have a quirky quality that can be hard to achieve with film or large megapixel digital cameras. I have learned to embrace the noise and low quality resolution as a positive. The look it gives your photos is very unique and the camera is easy to use."

Koury Angelo :: beyondmegapixels.com

Couldn't agree more. This is why I have two iPhones... I use the 1st gen one predominately as a camera... and keep my iPhone 3g for tunes & communication. Some folks may think this is greedy... but it makes sense to me.