I'm sure I'll get flamed by some of my peers for this opinion, but there is a case for digital zoom on a smartphone camera. Consider that for many users the purpose is point-and-click-then-send, and the user has no intention or ability to import into post processing for enhancement or cropping. Continuously variable optical zoom is rather beyond the practicality and economics of a smartphone so it has to be digital. It helps to be able to crop in camera and remove the embarrassing group who would otherwise appear at the edge of frame and for these purposes the digital crop is usually acceptable with any degradation made insignificant by the poor lighting and intoxicated atmosphere of the moment.
It is also useful for my own usage, record pictures while doing technical repairs. I need a photo of connectors so I can check they are correctly replaced, but I need to have some kind of zoom to get close enough to read the cable labels. Slight loss of quality is unimportant, getting a usable shot with the portable device immediately to hand is essential.
If I want exhibition grade photos I'll be using Nikon not Apple to capture the image, unless it is a first snatch shot with the closest device to hand when the little green man steps out of his starship.