In reply to Damo:
Hard to argue with the numbers quoted there, I guess, BUT...I've seen the same "mobile phones will kill the compact digital" stories 4 or 5 years ago. Looking at the sub-£100 compact camera range in Argos, Asda or Tesco for example, it seems that there is more choice than ever before. But if people aren't buying, hey ho.
I wonder, actually, whether the sub-£100 compact camera market might take on a different mantle - that of the "back-up". A mobile phone is so important to people that in some scenarios they might not want to expose it to the world (inclement weather, crowded concert with people jostling etc.) and a chunky camera could almost be considered as being "disposable".
I had a Samsung Galaxy S2 and the camera on that was excellent...but ONLY under a very limited range of conditions (namely - daylight and well lit). I got some pics with it that surprised me with their quality e.g.
http://www.flickr.com/photos/blue-straggler/6908520647/in/set-7215762939817... but the vast majority were duffers.
Low end dSLRs are the more likely compact-killer. Or perhaps low end dSLRs in tandem with mobile phones. I still think the sub-£100 compact camera market will be healthy though, especially for the older generations who don't tend to go for fancy phones and don't want the fuss of a dSLR.