For the price they charge, it's really not that good. A new iPhone costs as much as a really nice camera and yet the sensor is fucking tiny. They could fit something a little larger in there, have it be around as good as a normal digital camera. Of course then, because it raised the price a buck or two, they would have to charge like $300 more.
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I don't actually mind the price, because I happily pay for a product that works for my needs and lasts in my use very well. The camera is not actually that important to me in a phone, because most of the time I have my real camera with me.
Well, of course, you think it's worth it. That's why you bought it. However, at the price point, although the camera is pretty good, they could definitely afford a larger sensor.
Of course, not everyone needs a good camera on their phone, but when people go out to the corner store with just some money and keys, they still have their phone, and it would be nice if it were actually as good as a digital camera, rather than just being good for a phone. Then, when you're just out on an errand or something, and you see something really cool, you can get an amazing shot, not just a pretty good one.