I don't doubt that the iPhone will shrink the market for DSLRs eventually, but I don't think it's going to do it to a significant extent just yet (not much more

I don't doubt that the iPhone will shrink the market for DSLRs eventually, but I don't think it's going to do it to a significant extent just yet (not much more than it already has been). I'm skeptical that people buy DSLRs just for the bokeh, and anyways the samples that they showed look nowhere near as good as real bokeh from a nice lens. I think non-photographers buy DSLRs because they still take better pictures than smartphones in certain situations, particularly when an optical zoom would be desired (e.g. A kid's performance or graduation). The new iPhone comes a step closer to potentially addressing some of those situations, but it's still limited; 56mm full-frame equivalent is not really all that zoomed in, and AFAIK there isn't yet any way to zoom between the 28mm lens and 56mm lens any better than traditional digital zoom (i.e. cropping and rescaling).