It amazes me how people can convince themselves that images that can be replicated by a $99 point and shoot are somehow stunning and impressive since they are from a Lumina 1020, or iPhone, or high end Android phone ...
Obviously, this camera phone is not going to offer more than DSLR with a bunch of prime lens to swap. And can't even do what a common 50mm f/1.2 on a full frame sensor ( or even film ) can.
The disappointment with pocket p&s cameras had been the lack of control. We had seen that tackled by Sigma DP series, Ricoh GR series, and subsequent follow-up from other companies. And today we have super compact full frames and Sony's WiFi lens offering ( with sensor and SD storage ) that use any phone as its body, practically turning the phone into a swappable lens camera body that can take any lens and the great sensors that they come with. We are very well aware of that.
However, for those who are inclined to just draw out their phone to take snapshots, but want control over images taken, this is a great phone. Yes, there's almost no control of depth of field, and no way of getting the look of specific focal length since zooming is just cropping. But.
There is creative control over the composition of light and shadow. That is very attractive. And I can assure you most low/mid range p&s can't do that. There had been some apps that allow this on iOS, but 1020's oversampling makes this advantage far more attractive, since in such compositions, noise in shadow can ruin even a good composition.
This isn't about a phone camera surpassing or replacing $700 p&s. It's a phone that surpasses other phones in image performance. And it's a phone with enough reason to ditch carrying a separate low/mid range p&s when on the go. It really does serve the purpose of two devices.
I love taking photos. Yet, I've never felt compelled to take snapshots with my phone. I just carry a camera, even if it was just a p&s with exposure control and better lens+sensor. This is the first phone that I don't feel silly fiddling with its camera.
Edit: I've added two shots taken from the same spot. It's a mall walkway just outside MS retail store where I just got my phone 5mins prior. These two very first test shots aren't great photography but illustrated what 1020 can do
from the same spot. Pretty sure most low to mid p&s can't do this.