This thread is VERY pessimistic. The photography industry has re-invented itself a number of times and the same will happen again. The vast majority of people are point & shoot photographers that in the past would have bought low end film cameras like APS or throw away cameras. When digital arrived they bought lower end digital compacts only a small number moved to SLRs and then DSLRs.
The global population is 7.1BN people and last years 16.5M DSLRs & CSC were purchased, that will decline to around 15M in 2013 but thats still 3M higher than 2008. In 2008 over 100M compact cameras were sold that number is now around 75M and falling as smart phones replace them.
Thing is no matter how good smart phones become for the foreseable future they are not going to replace DSLRs among the hobbiest photographer who values quality images. Fact is I can see the difference on my ipad retina even between images shot on my Canon 7d and my Canon 6d using the same L lenses, if as I did this week shoot the same scene on my iphone 5S the difference in quality is huge.
The lens of the iphone 5S is rubbish and thats a big improvement over the iphone 4 and I disagree about software once in your computer you can do anything with DSLR photographs.
Canon 5DS, Canon 6D, 16-35 f4L IS USM, 17-40 f4L USM, 28 f2.8, 24-70mm f4L IS USM, 24-105 f4L IS USM, 100mm f2.8L IS USM, 70-200 f4L USM, 70-300 f4-5.6 IS USM, 50 f1.8 STM, 100-400mm f4.5-5.6L IS USM II, 1.4EX III, Canon G7 X, EOS 760D EF-S 10-18mm f4.5-5.6 IS STM