Are you seriously suggesting that 12mpix from 1/1.8 (khrm n8) inch sensor is too much?
Have you seen n8 sample images? Those are pure awesomeness, not even talking about 720p with 4x4 pixel binning....
E: zeiss experts have done amazing job with n8's lens based on sample images. Diffraction is next to nothing and nr etc is optimized for details. I'd compare n8 to my 1Ds(11mpix) + 28mm c/y zeiss. Yes 1Ds gives more details but there is no reason duct taping it to your phone... (2+ kg weight plus the size)