I am the first one to shrug phone / compact cameras off as toys. I dislike the Canon G10's image quality, and think the Canon 350D sucks too. Let me state this very clearly - the iPhone 4's camera is SEVERELY limited in what it can do. I would never take it on any serious photography trip. But... when lighting conditions are perfect, here is what you can expect at 100% and ISO 80, 1/250 sec and f/2.8. The sharpness and per pixel image quality rivals the Canon G10. Pretty impressive.