The iPhone 4s is available for 200 with contract. The camera is ridiculously good as long as you are not looking for macro or zoom shots. Personally, I've pretty much replaced my regular camera for almost all purposes. It takes a very good picture, and unlike my real camera, is always with me.
Most modern smartphones keep inflating the MP rating of their cameras without actually improving the optics of sensors they use. The recent exception is the iPhone 4s, which actually has a fantastic camera, and the upcoming Nokia Lumia 900, which uses Carl Zeiss optics. Nokia is known for their very high standard of camera in their phones.
The Droid Incredible by HTC, at it's time, is the future of computing in the palm of your hand. The super-sleek phone is less than a half-inch thick, yet it packs powerful components such as a 1 GHz processor, 8-megapixel camera, and a large high-...
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The Droid incredible is a little old but the camera is very nice, it has one of the top rated smartphone cameras. I personally don't recommend using phones as your primary camera as the quality isn't as great as a standalone camera, but I understand the convenience you want with the camera and the phone being tied together.
Exactly Hilary, just something I can maybe use with instagram without looking like It was taken with a shoe box and pinhole, I have heard good things from friends using the HTC as well, thanks!