I just bought a video phone and have a picture phone. I don't use it that much, but like cj says, the times I've used it I was glad I had it. I've used it several times when we've been out with the family and the kids did something cute and I didn't have a camera with me.
I've also used it a couple times when I was riding my bike and had an altercation with the morons driving the cars. Giving a cop a description of a car and a license number just doesn't compare to showing them a photo of the car, the license plate and the face of the irrate idiot driver that just threw a coke bottle at me and then pulled over when I shot him a bird.
It's funny how those drivers always back down after I pull up and they realize I'm not some 140 pound wimp in spandex. They still like to stand there and yell a lot and it really freaks them out when I pull out my phone and take their picture.