Apple's new apps really look sweet; just get better and better.
One of the things that I like the most is the quick easy access to camera on the iPhone. It's always been a PITA to have to turn the phone on and activate the camera, loosing lots of spur of the moment pics. Always thought that Apple needs to make it more like a quick point and shoot, and they have. Hopefully Apple will continue to really improve the camera hardware in next generation phones, like modest increase in MP, and improved optics / optical zooms. I would certainly trade a little increase in thickness of my iPhone for this. Then no need for a P&S anymore, especially if someone then makes a housing.
Seriously though I think this concept is really what bloggers like Thom Hogan are talking about when they point out that camera phones are stealing a large portion of the traditional camera makers' markets. The camera you have is by definition the best camera at the moment. He also points out that the traditional camera manufacturers have missed the boat in understanding that much of the future of photography will be software driven and not hardware driven, and that hardware makers will also have to think in terms of a more modular approach.
