I think the iPhone 4's 720p HD video is as good as, or better, than that of most P&S cameras, at least in summertime light levels.
iPhone 4 has a built-in, two frame, two-exposure genuine HDR feature which works pretty well, and allows you to save both the blended exposure and the other, or just the blended shot with a menu set-once-and-forget setting.
iPhone 4 makes calls one hell of a lot better than a P&S camera, and browses the web better, and uploads to Facebook, Twitter, or my FTP server better than a P&S camera. iP{hone 4 has an f/2.8 lens, 3.25mm FL, f/2.8 max aperture, shutter speeds 1/15 to a bit over 1/10,000 second, ISO values 80 to 1,000. AND, it has a 5-Megapixel backside-illuminated sensor, which very,very few P&S cameras have. It's a pretty decent camera, actually. The FLASH is its absolute weakest area; it is LED, and very weak, and gives extremely poor color balance many times.