I don't think anyone here is arguing that we should make the camera sensor worse. I think people here, including myself whom are arguing for a xenon, are just generally disappointed with Nokia having a flagship camera phone without it. Until a company comes out with LED flash as good as Xenon, including stand alone camera, I will have my reservations about it. We will see though if Nokia's N86 will be the first...it may just be, but we will all have to wait.
I agree with your point here. Companies should pay more attention to lenses and sensors. However, the best point and shoot camera phone, and most people would agree is the N82, makes it good because of the xenon.....even in good lighting conditions. It has a very good sensor and lense, plus the added bonus of great low light shooting or in the dark. I could care less about 8mpx personally...if they just updated the N82 in a different form factor and more friendly keypad it would have been a good update IMO.