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That was basically my point, though... when my P&S was stolen earlier this year I basically let it go and didn't bother replacing it as the phone had sufficiently replaced it, for me. That said, it would be ridiculous for me to say that the dedicated camera is a dead technology just because I don't personally need or want one. An avid reader is equivalent to the avid photographer and will always want the best possible experience, and many will be willing to pay for it.
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