We know that the point and shoot camera sales were devastated to people moving to their cell phone. I wonder if the same thing is happening to a lesser extent with the low end DsLR's.

In the Sony vs Canon debate, Sony is dominating the cell phone sensor market.
That is one reason I have trouble buying in to the doom and gloom for Sony. In many respects they are more of a sensor company making camera bodies as a sideline. You can tell this in their reports, they brag on their sensors and say little about selling cameras.