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You're probably both correct - from your own perspectives.
Cameras are no longer precision tools used by photographers as they once were (box cameras excepted) but mass market products produced to a price. For the market your manager friend is in, the buyers want something to produce snaps for social networking sites and digital photo frames; a camera phone is good enough.
For the enthusiasts, this isn't the case; and for the critical, it never will be. For reasons I can't be bothered to explain, you can't compress a camera that can be used to produce a decent enlargement into the space that a camera phone has to occupy.
Cameras may die, of course, when there isn't enough money to be made from them for the mass market makers to be bothered with them. When that happens (and if film is no longer made) serious photographers may go back the the methods of the 19th century; in which case, expect to see a flood of cookery books on what to do with egg yolks.
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