iPhone 4S video image stabilization in action

Some of the best photographers never use optical zoom. They use prime lenses and "zoom" with their feet. Zooms are generally for more amateur photographers. That said, cell phone cameras are generally geared towards more amateur uses, so it will be nice when zooms become a standard feature. But not using zoom doesn't make someone inexpert. It's often quite the contrary.

"the camera is so good point-and-shoot makers like Sony, Canon, and Nikon should be seriously worried about their sub-$200 camera sales."

The sensor is made by Sony. But yeah, they might be helping to cut into their own point and shoot sales which probably net more profit.

Wonderful! Now maybe all those UFO videos won't be so shaky and you'll actually be able to SEE what they're looking at!

Your throwaway comment about "the exception of optical zoom" deserves more weight, since to anyone who cares about creating better images rather than just capturing an amateur snapshot this matters a lot.

Honestly its articles like this that kill the credibility of this site.
For someone to say they never use optical zoom is (a) highly unlikely and (b) shows they are perhaps not the most 'expert' of camera aficionados to write the article in the first place.
The camera on this multi function device has been a weak link since iPhone 1 and now its finally half decent. Don't get too carried away though.

If you never use zoom, then you are not much of a photo taker even on a point-and-shoot level. The camera in the 4S is quite good, but it is still a cell phone camera, and doesn't come close to having the optical path, capabilities, or flexibility that even a good point-and -shoot has, let alone a "real" camera...

Make sure you watch this is 1080 to see the full scope of upgrades. It is very impressive.

More detail, better exposure, better color and of course the image stabilization.

It is a massive improvement.

That was a terrible comparison. Go outside for a walk and look around. How does it work in action, not standing in one place.

The last two sentences in the article are contradictory.

What about a decent flash? That would be pretty important to me.