I've seen the future, and it's the cellphone

Quality of the image is undisputed. But there is a reason why the latest crop of DSLRs is so popular as a video platform, and that's shallow depth of field. You'll never get that out of a small camera. You need a large sensor and long fast lenses to achieve that. Mike Kobal has a couple of clips on Vimeo that are phenomenal in their use of selective focus..
 
This look great but I have a hard time believing that this video wasn't sweetened in some way in post. Pvdhaar is correct, however. While the HD DSLRs get knocked as "they're not as good as a camcorder" - and that's true for must consumer uses, I'm pretty amazed thus far at the film-like quality (selective focus) I get out of the Nikon D5000. Ironically, while DSLRs may not be the best tool for the family picnic video, don't be surprised if you see something at the multiplex shot with one.
 
The convenience of a phone, people are less prone to freezing up when you pull out a
cellphone, digital P&S's are doomed me thinks. There will still be a market for a DSLR
or the Micro Four thirds - where you can utilize different lenses. But still, this is the ubiquitous future.
They describe 12MP and a Carl Zeiss optics, somewhere I read that Carl Zeiss is projecting
that a large percentage of their market will be cellphone/smartphones. And once Apple decides
to add 12MP and appropriate optics in a future generation phone - probably within a year
I imagine ... I would not buy a fixed lens digital P&S ... no way, their days are numbered.
 
The N8 video and camera specs look good, but it's running Symbian^3. I don't know anyone who develops apps for Symbian^3. HTC Evo has 8MP camera, 720p video recording, and HDMI connection. Plus, it runs android which has about 50,000 apps available (literally). I'll go out on limb and say not only will the smart phone kill the point-n-shoot camera, but it will also replace the netbook/notebook market. The iPad and future tablets, are useless considering all you really need is a docking station monitor thing for your smartphone (assuming it has HDMI).
 
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