I would change your original thesis to say that "cheap" or "low-end" P&S cameras may well be obsolete. Many manufacturers are dropping the low end of their lines. We may not see those in a few years.
That said, I don't see the better quality P&S cameras being replaced by phones any time soon. The sensors they can cram into an affordable phone still leave a lot to be desired IMHO and the processing functions are pretty simple. The feature set is still limited and RAW capability is still pretty important for many of us.
I am one who carries a P&S in addition to my regular gear when I travel. There are times when it is just too much hassle to unlimber the big camera for a quick grab shot while walking to dinner or traveling by train, etc. Even in cases like that, though, I still want full control of the resultant images.
Last edited by abmj-jr; Apr 18, 2014 at 5:02 am