It all depends on what your bothered about...
I used to always carry my phone and camera around with me, but now more often than not I end up taking just my smartphone with me rather than a camera and smartphone, which is a HTC HD2.
Sometimes I do still use my camera and there are good reasons for this
Most Smartphones do take damn good pictures, mine actually takes better pictures than my old Canon 3mp digital camera, and can even do Panorama mode which when you learn how this works it produces some amazing panoramic shots (to do this you set it in panorama mode, then take 3 pictures, one on the left, then there is a ghost image which you line up and take a second one for the middle, and then you line up the ghost image again for a 3rd shot and it glues these together quite well to produce a panoramic shot!)
However despite the good quality pictures there are still some things that smartphone cameras just haven't got right at this present time, and it's these that you need a normal camera for.
One major thing that is missing on all smartphones is optical zoom. Most of them have digital zoom, but this is useless. All digital zoom does is crop the image for you on your phone, something which you could do anyway at home on your PC and with greater accuracy. ensuring that you didn't miss out any of the important bits.
With optical zoom it uses various optics to actually zoom in on the picture you are taking, this allows you to take the picture and still keep it at the full resolution, with digital zoom however it lowers the resolution to zoom in (same way your paint program works when you select an area of a picture and click Crop). But of course instead of taking a full 10mp picture you can end up taking a 3mp picture instead.
You might not think optical zoom is very important but you'd be surprised at how close you need to get to some items just to get that perfect picture - for example if your at a concert, taking a picture with a smartphone is likely to get you a very poor image of a sea of thousands of people and a minute guy on stage and no amount of cropping will get it right, where as taking it with optical zoom can get an amazing close up picture.
Then you also have shooting modes, some smartphones do have a basic selection of shooting modes, such as changing shutter speed, increasing brightness, etc, but many digital cameras have a far more enhanced array of options. By far one of the best options on most digital cameras which doesn't appear on any phone I've seen is the "Scene selection" mode. This allows you to take pictures based on the scene you are taking, for example one of the scene selection modes is usually "Fireworks", and if you are at a firework party this is superb for capturing the picture of the fireworks just at the precise moment the gunpowder explodes. In firework mode what happens is you press the shutter and the camera monitors the light and the second the light increases greatly it takes the picture, thus you get the picture just as the firework has exploded, instead of with smartphones trying to manually time your shots and relying more on pot luck than anything.
Also on most cameras you have a mode called Macro or Super-Macro mode, this is missing on many smart phones. This allows you to take pictures close up and obtain superfine details. This works perfect if your into taking nature photos. With macro mode on you can take a picture of a flower and even see things like the pollen of the flower or the furr on the bee which you wouldn't see if you tried without macro mode.
On top of this on many digital cameras you do have manual focus. This again is missed on smart phones. Smartphones tend to use auto-focus rather than manual which can cause major problems if shooting pictures with certain areas of bright lights. For example last weekend I went to Ludlow Medieval Christmas Fayre and there was a person doing tricks with fire, (juggling with it and eating it), I took my camcorder with me and used that to take photos instead of my smartphone, because on the camcorder and also most digital cameras you can turn off auto-focus. In this instance if I'd have left autofocus on, or used my smartphone I would have got a very blurry image. Autofocus tends to work by focussing on the brightest thing in the picture (assuming it's a face), but on occasions where fire is involved, fire can become brighter than the human face and the camera can focus on the wrong thing. Having the option to turn of auto-focus and use manual focusing solves this problem (ok it means now you've got to play with the focussing yourself, but at least you can see the picture!)
Of course it's not all bad for smartphones, they do have some good advantages over digital cameras. For example they are handy if your taking them to places where expensive digital cameras may get lost or stolen, carrying a smartphone only means you are carrying less so have less to look after (you can even use them as sat navs which saves hiding the tomtom every time you leave the car - so you've eliminated two bulky items that are at risk of being stolen or lost for one small item which you just need to keep track of).
One major advantage smartphones have is the fact that the majority of them include some kind of GPS/A-GPS system, some cameras also include GPS/A-GPS systems as well but they're more at the higher end range.
The good thing with having a GPS linked to your smartphone when taking pictures is that you can add location information to the picture (to do this you normally have to chose a specific mode like "Location" on the camera settings). This comes in extremely useful when trying to sort out your pictures on the computer. Programs like Picasa can read this information and plot your pictures on a map which is really handy when looking back at pictures and trying to think about where you were at the time.
Recently I did have a use for this, I worked at a few events this year in the summer, during my work there I took some photographs, three of the events - The Royal Welsh Show, Goodwood and Wings and Wheels all feature pictures of aeroplanes taken on my lunch break in the middle of a car park... as you can imagine every car park looks the same and it without looking on the net for dates of the events it was hard for me to judge at which event these pictures were taken. Luckily though because I'd taken them with location services enabled I could see straight away exactly where they were taken by using Picasa and it's Google earth integration. Ok this might seem a very basic problem which I could have solved anyway just by searching for the dates on-line, but I know people who travel a lot and sometimes they look at their pictures and think they were taken in totally different locations to what they were really taken in. Also sometimes it can be good to see exactly where you were stood in the picture, for example this year I went to the National Eisteddfod in Wrexham, whilst there I took some pictures with location enabled and when uploading them to Picasa I could see the exact point in "Y Maes" (The Field) where things like the tents had been, and which now is just an empty field.
I think smartphones do have the possibility to make simple point and shoot cameras extinct, but there is one final important point to consider - battery life. It's ok if your out and about to be taking pictures with your camera until it flattens the battery, but if you do that on your smartphone not only will you not be able to take pictures any more it will also mean you can't take or make phone calls until you find somewhere to charge it up from (most smart phones do have either a mini or micro-usb port on them so you just need to find a USB charging port, but what if you were at something like a theme park or festival and you wanted to locate the rest of the family and you'd flattened the battery taking pictures and videos?)