Photos should be taken with iPone and EDITED on iPhone.
Interesting approach since at least my iPhone 3G has so bad camera I would use for anything in general.... (probably the 3G S cameras are better and they have also 3MP resolution)
I did give a try, first by researching what type of camera it has. This guy
covered it pretty well. Pretty much auto ISO, auto focus and f2.8 (exif info also shows this).
I took a positive approach and hacked my useless iPhone dock on my tripod and try to shoot some "studio" like pictures, using the Night Photo app for delay to avoid the camera shake and some post processing with Photoshop.com and BestCamera app.
You can vote for it here
To be honest it looks pretty horrible. The reflection of the soda can washed out, I haven't found a tool to remove the extra "steam" of the "freshly" opened soda can (which was faked by a birthday candle). The jpeg editing made the quality even worst.
The only advantage to shoot with iPhone it helps me to learn composition by exploring different angles, getting closer or further away, but I can learn this with a prime lens too...
Yeah I know the gear shouldn't matter, but why the people who saying that who has at least $30K equipment in their hand?
Anyway after taking a look at the iPhone API it got clear why the camera applications suck on iPhone, there is just no control over taking the exposure or getting the raw file, the Apple API gives you back a jpeg, since it's lossy you process it and it gets even worth quality...