A while ago I was trying to compare a few of my cameras. It was a cloudy day in early fall. All three cameras and my eyes agreed that the sky was dull-grey and the leaves on the trees drab-brown.
To the iPhone, however, the sky was more blue than grey, and the leaves had an autumn-orange hue instead of brown. It wasn't a complete fake, and if I had only had the iPhone picture I wouldn't have noticed. But it was just a little bit better-than-real, and in direct comparison obviously incorrect.
This, more than anything, discounted the iPhone camera for my uses.