All the negative points you mentioned are true, but there are plenty of times in people's lives that you can plan ahead to have a camera with. Personally, I feel the absolute best use of money is to capture memories, but I'm biased.

It's mainly the postprocessing to make up for such a small sensor's downfalls that are clearly evident to me, in particular sharpening. Cell phone pictures can come out fine in bright light, but anything dim or dark will be a muddy mess at larger sizes in my experience.

I know I used it as an example, but 8x10s are also quite small. For a wall in a decent sized room I usually recommend 16x20 or so.