[clicks]

    The rear camera of the LG Nexus 5 is supposedly a 16MP 
    OmniVision capable of recording 4K video at 30 frames-
    per-second, or 1080p video at 60FPS

Well isn't that impressive. This reminds of videos comparing iPhone4S's camera with top-of-the-line cameras like the Canon 5d Mark ii: http://www.youtube.com/watch?v=qIaa8IM-Auo

My question is: why aren't these uber-powerful camera phones driving down the costs of high-end dedicated cameras, when they are in fact in some cases competing with them head-to-head?

[AndrewDucker]

Because you will get much better images out of a larger sensor, which can take in a lot more light than the tiny sensors you get on phones.

Also, a phone isn't thick enough to allow for a physical zoom.