Of course. At a certain point, it's just physics. There is only going to be so much you can get out of such a tiny sensor and lens. Software can only do so much without turning it into an AI photo.

Even just carrying around a small Micro 4/3 camera gets you 3x the sensor surface area of a smartphone. An APS-C Fujifilm like an x100V gets you 5.2x the sensor surface and is still mostly "pocketable" (in a bag).

What the iPhone has effectively replaced though are the old point and shoot digicams, which now have smaller sensors than the iPhone.