Check out the chart on the link below showing how pictures taken by users with iPhones are coming to dominate submissions on the Flickr photo sharing site.
http://www.popphoto.com/news/2011/04/iphone-4-set-to-become-most-popular-camera-flickr
The other four picture taking devices listed among Flickr's top 5 are "real" cameras. The iPhone certainly has the edge in convenience but I still believe people interested in quality picture taking rather than just snapshots are going to stick with DSLR cameras.
To me what is most mind boggling is the sheer quantity of submissions made to Flickr on a daily basis.
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