Nokia Lumia 800 as a dedicated compact camera

I use my phone more and more as my dedicated point and shoot camera, it's just so convenient. I use an iPhone 4 which takes pretty decent photos, but only has 8GB of storage.

I've been thinking of getting a phone on the cheap to use as dedicated point and shoot camera and maybe as a music player. So my question really is, how good is the camera on the Lumia 800 ? How does it perform in low light ? Is it a good replacement for a compact camera ?