In camera panorama?
I've used Sony's version with my HX P&S and it produces pretty good results... Changing lighting conditions (e.g. dark on one side, bright on the other) can be a challenge, as can moving subjects (duh) but I rather like having it. Looking forward to trying out Panasonic's version on my LF1 (arriving tomorrow).
For me it's nice to have, even if stitching them later can produce better results (significantly better in some cases, depending on how many shots you take, whether you break out the tripod, etc)... Whether you put it ahead of other things is more of a personal choice.