We have a decent little Canon P&S, optical image stabilization, BSI sensor, 16 (? maybe 12) megapixels, etc. Good little camera. Bought that shortly after our firstborn's 1st birthday. Our older Canon just couldn't keep up indoors, and between my OG Droid and then my Trophy my cell cameras weren't up to snuff either.
Since getting my 928, I barely touch our camera. I can take pictures, do any and all editing or fixing (cropping, rotating, red eye, exposure, shadow/highlight, color, etc), I can share them to social sites or email, upload to Skydrive, etc.
Heck, received a couple photos today from someone of my wife and older son from a wedding this weekend, she took the shots on her P&S, but I ended up cleaning them and resending them onto my wife because it's so second nature. Saves so much time versus sitting down at the computer and having several hundred photos all untouched to work through when I get a chance.
edit: also, I would think that anything with a good distance involved in the shots, would probably be poor candidates for the HTC. Closer shots where cropping will be far more minimal should be a lot better. For someone like my wife, I could see this phone being fine -- she would learn that it takes nice enough photos but isn't a 100% replacement for a "real' camera.