I have a digital camera, and you are right, image quality is good but it's a little bulky.
It's not so much I want 'covert' though they wouldn't be excluded. I often see an image, and want to save it for a better look later on. Or for that matter, to include here. With hands already full, I don't have room for additional equipment, hence changing my phone to include a more suitable camera. As it is, I've lost one blue-tooth ear-piece, and my phone gets dropped about one a month..... Dunno about 'hands-free', I'm certainly 'hands-full'.
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