I currently use a Canon 7.2 megapixel camera, that I got just after Christmas last year. Admittedly I got it for a great price in the post Xmas stock obliterations that many retailers run. It’s another device though, and it doesn’t fit in my jeans pockets with my Axim, Nokia cell, wallet and various other Tom Sawyeresque "bits of string" that I carry on a daily basis. Therefore the Nokia 6288 that I have has become my primary camera. A 2mp camera that I use to great effect.
So that’s not a bad photo, right? Not edited or enhanced, straight off the phone, but you can see the limitations. All of those dashed lines are electricity cables, there’s a railway track there if you could pan down.
Recently I got a loan of a Nokia N95 to check the GPS functions, and thought it was an all right phone, the GPS worked well and lo and behold a 5 mega pixel camera.

Well, Nokia released today, some news
"It’s what cameras have become – the new Nokia N82"
it’s a beautiful phone, and it looks like the art of convergence is becoming more sophisticated. Now your PDA is a GPS and a quality 5.0 megapixel camera!

View the full press release at the above link.