Point and Shoot Cameras: A Dead Technology?

Mr. Z and I were talking earlier this month about the progression of photography and how the more smart phones that are being introduced and used by the general public, the less the need for point and shoot cameras. Omnivision has now said that they will be introducing a camera to be in a phone with 12.6 megapixels, about twice the amount of my Nikon D50 from 2007, and can shoot 15 frames a second, and to top it all off will be able to shoot video in 1080p. It may be introduced in the iPhone 5. Here is an article describing it's release.