In fact, the worse the tool (within reason of course) the better. Why? Because it forces you to get creative and to focus on the essential: composition and light.
Yes definition/sharpness will be crap. Yes there will be tons of noise on most pictures. So what?
I believe that everyone can benefit from owning a good camera. A DSLR with a good lens if budget allows. But a good photo is a good photo, regardless of the gear you use to take it. Camera phones have their strengths and their weaknesses, but by emphasizing the good and downplaying the bad, one can create magic with them!
Here are some tips that may help you do just that: