Need to replace my iPhone 3

I dropped my iPhone 3 face down and the class shattered badly; some of the internals are exposed. It still works but it's hard to read and will likely die soon. I don't use the camera because it's so poor. AT&T (my cell phone company) is offering an iPhone 4s for a bit less than $150 tax included. I like the iPhone, use it mostly for phone and email, but would like a much better camera with the next one.

From what I've read here, the camera in the iPhone 4s is about as good as it gets in phones except for the Nokia 808 which I'm not ready to pay ~$600 for. Is that correct? Anything else I should be looking at?