The times they are changing. Apparently, Canon is 'concerned' enough that the latest smartphones may have enough photographic technology to challenge the point-n-shoot cameras and seriously make a dent in their sales. Thus, they have embarked on an ad campaign, with the tag line 'Don't Let A Call Interrupt Your Photo' to try and stem the tide.
Apple, Samsung and others are coming up with optical zoom and LED flash technology in their smartphones to even try and challenge the low end DSLR cameras. Read my latest post on this topic. Frankly, I think this 'fear' is a tempest in a teapot, just like the prominence of image sharing websites are supposed to diminish the appeal of still photography. My philosophy is simple. There are always those who will choose simplicity and multitasking capabilities in a piece of equipment over the pursuit of excellence with a dedicated purpose.
Unique and high quality still photography will always be in demand. The people and equipment manufacturers responsible for making this happen will be secure in the knowledge that they just need to do one thing, and do it the best. The rest will take care of itself. You can see my work with smart cameras on MichaelDanielHo.com