I have to disagree somewhat. Here's why: buying a phone with a camera does not put more money into the pocket of the service provider. They make money off the phone's calling plan. They actually LOSE money sometimes with phones by paying for the equipment on behalf of the user. Do you really think they pay less than FREE for the device?
I use the heck out of my phone's camera. I thought it was INGENIOUS when they starting coming out with camera phones back in 2003. When I was stationed in Japan, I had a color capable cell phone before anyone in the US even considered it (cost). Is having color pixels "materialistic" and "nonutilitarian"? I think not.
Almost all of my friends carry a point-and-shoot camera... either in the car... or in their purse (ladies). Because guys don't normally carry purses (some do!), the camera on the phone serves GREAT purpose. My friend borrowed my camera about a year and half ago... he still hasn't returned it. lol I've relied on my phone's camera during this time. Its not the best quality but it gets the job done. Yes, this includes selling items online. It has been a HUGE difference in being able to sell something to someone several states away. Heck, I even take videos of my fish eating and breeding.
I also rely on my cell phone as my ONLY phone. Why do I need a landline? I'm hardly ever home. It serves the same purpose and I don't have to go running through the house to pick up a call, its right on my hip! The "purpose" of an invention does not LIMIT what its potential is.
Your argument is quite flawed... even while using big words. sorry.