Wow, so much negativity in these comments. To me this is the logical conclusion of the phone camera (a lot of people had this idea, I'm sure, but they seem to be the first to get it out). After bashing Samsung for their iPhone copying, I applaud them here for making something innovative. Camera phones (always available, and now internet connected) are a not-insignificant part of the social web revolution--people want to see and be seen (and apply some filters, too).
Front like a camera, back like a phone. Slick UI to control the camera instead of the usual confusing array of buttons. Image quality should be equivalent to other P&S, which is better than the usual camera phones. 16 MP is just a number to sell the thing into the target demographic: active camera phone users, not DSLR users.
And I think leapfrogs is not an exaggeration. If this takes off, Samsung will have the edge and can start branching out into other wireless-enabled cameras, camera OS's, and who knows what else they can think of. The pure camera manufacturers will be playing catch-up forever, just as the old cellular phone manufacturers were leapfrogged by Apple and never caught up.