iPhone replaces current pocket camera ?

I am looking to upgrade my phone. I currently have an old-school flip-phone and am looking to get a smartphone. With my current phone, I usually also carry a Canon SD1100 when I'm out with family/friends and don't want the extra baggage of a DSLR. It would be really nice if the smartphone I decide on could also replace my pocket camera. Be nice to have phone and camera in one device.

I'm not expecting DSLR pics out of a phone camera. If image quality is enough to print 4x6 or 5x7, then I'm happy.

Have read a ton of reviews and the iPhone4S usually gets good reviews for image quality. From what I have read so far, the iPhone5 is expected to improve on this.

Was just wondering, do any of you use your phone as your primary pocket cam ? If so, what phone are you using ? Anyone use the iPhone4S for this purpose ?

Please excuse my ignorance. Smartphones are a new world for me.

Would appreciate your thoughts. Thanks !