AppId is over the quota
To the question of 'phones replacing cameras in the long run, I don't think so, in their current form.
The limiting factor is the lens at the moment. Until a lens is developed that is a) flat, b) high quality and c) scratch resistent, the 'phone won't be able to replace the camera.
I have an iPhone and an htc Mozart. They are fine if I am out and about and need to take a quick photograph. If I am going out on a party night, I'll take my little Ixus, as it has a much better lens and sensor and produces usable images under most conditions.
If I really want to take photographs, then I'll grab my Canon EOS550D.
The same has always been true, right back to the early days of consumer cameras.
You started of with a Box Brownie, which had a fixed focal length, no possibility to adjust shutter speed, depth of field etc. It was great for taking on picnics or quick snapshots. The more serious photographer was use some form of compact camera, which allowed some focusing and a minimal amount of iris movement. The really serious hobbyist and professionals used SLRs or full frame cameras with replaceable lenses and full control over the image being taken.
The same is true today, although the "snapshot" box brownie is now a mobilephone.