Tom, I agree, the implementation of the touch focus is pretty cool and that's what I meant by the software. I'm just not drinking the coolaid that some others are obviously swimming in. I've seen multiple times people saying that they'd have to seriously question ever buying another point and shoot camera again after using the 3Gs. That's a pretty bold statement when you have small pocket P&S cameras like the Elph series from Canon which produce really great shots, have usable zoom though wide and tele ranges, stabilization on some models and of course sometimes a decent set of manual controls if you need them. Images at the camera's full resolution look better than anything I've seen from the 3Gs at 1:1, and lastly, if you take any of the photos from these pocket cameras and down-sample them to 3MP they can even look dramatically better.

Maybe people surfing Flickr and Facebook don't care because all they'll ever look at are 320 pixel wide thumbnails (like viewing the image on the iPhone's screen).

It seems like every few months you hear about someone inventing/prototyping or releasing some new amazing sensor and lens package suitable for a mobile device, but I can't recall ever seeing these amazing components making it into things like the iPhone. I've been saying for at least 6 or 7 years that Apple should integrate a camera with their iPods.