It is truly amazing what we can do on cell phones these days. That said, this isn't any better than anything on the market today. The video is simply better produced than many of the engadget video-walk-around-the-block-while-holding-the-phone sample vids we often see. Also note the choice of lighting - outdoor shots that are mostly shot during the golden hour ( http://en.wikipedia.org/wiki/Golden_hour_(photography) ). Very smart of them to release a well produced video like this though, as the common user will assume that the shots will always look this nice.
It's a lovely video, but it's not a real world scenario.
Agreed - while this is flabbergasting compared to anything, say, three years ago, the crunchy / overly sharp quality and blown-out highlights are the hallmarks of a cheap point and shoot.
It's a lovely video, but it's not a real world scenario.