I don't know a dang thing about cameras but do you mean to say a phone with a lens the size of a pencil eraser can replace a good camera with a lense the size of a 2 liter pop bottle???
I'm very confused here.
Not yet.
I have a camera with a 2l pop bottle sized lens. I need this camera/lens combination to get close-ups of birds flying (amongst other high magnification/high speed applications). No phone can do that - or come anywhere close.
However, I also own an iPhone 12 pro, and for the vast majority of photography using shorter focal lengths (up to about 50mm equivalent) the phone can do just as good a job as the rather large camera. (This covers the vast majority of social photography carried out by the "man in the street" for decades)
I'd never have believed this would be possible a few years ago - but computational photography is a game changer (basically using multiple lenses simultaneously and combining multiple shots automatically - instantly - in camera)
If you ask me now if a phone will ever replace my 200-800 (equivalent) lens on a good high speed camera, I'll tell you that I very much doubt it. I'll not be surprised in a few years time when I'm proven wrong.