It's not all about megapixels by any means, which is why a 2mp camera will kick a 2mp phone into next week with quality, however with phone as a general rule of the thumb the higher the megapixel the better the photos because they all tend to have similar s**tty little sensors
The reason why mega pixels usually means more quality is pretty obvious really, each pixel is a solid colour, so which photo will have more detail, a 10x10 pixel or a 1000x1000 pixel photo? You get the idea.
EDIT: Roy - so you're saying you wouldn't be any happier at all if the screen had much more details or the camera was usable in low light? If not then I guess you are completely right, but in that case there's no need to hype the GS at all because your G does all the software stuff anyway with 3.0
The reason why mega pixels usually means more quality is pretty obvious really, each pixel is a solid colour, so which photo will have more detail, a 10x10 pixel or a 1000x1000 pixel photo? You get the idea.
EDIT: Roy - so you're saying you wouldn't be any happier at all if the screen had much more details or the camera was usable in low light? If not then I guess you are completely right, but in that case there's no need to hype the GS at all because your G does all the software stuff anyway with 3.0