And yes, I'd have no objection to Apple fattening the iPhone a bit again if it meant a better camera or more battery.

I don't have the same problem with the camera as you though, I think it takes remarkable photos, considering it is in a smartphone. Most of the pictures I've been happiest with over the last three years have been taken with my iPhone.

I expect if I were printing them and sticking them on the wall then I'd have a different opinion, but then I never get round to doing that with my DSLR pictures, let alone my iPhone ones. And I actually look at my iPhone ones far more often than the DSLR ones...