Point-and-shoot cameras are nowhere near as popular as they were even ten years ago. The improvement of the best camera phones as seen to that... but there are still some reasons why you might want a pocketable digital camera with a fixed, built-in lens. And in the last year, we have actually seen a bit of a revival in this type of pocket camera.
The best compact cameras give you the advantage of either a bigger sensor tot give a noticeable jump in image quality over your cellphone. Or they offer a bigger zoom lens - making it possible to shoot birds in your backyard, or the close-ups of sporting events (which just isn't possible with a phone).