IPhone 5 will reportedly sport 8 megapixel camera from Sony
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[0] http://arstechnica.com/apple/news/2010/06/sizing-up-the-ipho...
[1] http://en.wikipedia.org/wiki/Image_sensor_format#Table_of_se...
Sure, to get to 1/1.6", the iPhone would have to get thicker. Personally, I wouldn't mind. I've owned every iPhone model since 2007, and honestly, the original iPhone was thin enough for me. (Of course, Apple likes to make their products thinner, not thicker, so it's not likely.)
Bullshit. A quick Googling reveals plenty of professional photographers using iPhones in their work.
For example: http://www.chasejarvis.com/index.php#mi=2&pt=1&pi=10...
If my wedding photographer showed up with an iPhone, I'd demand my money back.
I wouldn't hire an artist to do a building-sized mural in pencil, but that hardly means no one's doing serious art with pencils.