...I think the camera is better qaulity; but, would much rather have more MP. I Want 10.
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Sadly most consumers have come to equal higher MP with better images when this is not always true.
First, MORE MP DOESN'T AUTOMATICALLY EQUAL BETTER QUALITY. The quality of an image is very dependent on the SIZE and DENSITY of the photosensors used, so for a given sensor size, a substantial increase in MP count will mean smaller, tightly packed, photosensors which will ultimately cause the resulting image to be of lower quality with higher noise/signal ratio specially at lower light levels.
If you have two sensors, for example a 1/2.5" sized sensor (typical compact camera) and a 4/3 sized sensor such as those found on Olympus PEN system (about 9 times the size of the 1/2.5") both recording at 12MP (very typical resolution), you will get same sized images with similar resolution, but the 4/3 sensor will provide better results. The overall image quality captured with a 4/3 sensor vs 1/2.5" sensor is far superior, more so under lower light conditions - like indoor photography - beacause the photosensors used are bigger and less cramped.
The same will be true if you have two compact cameras (or phones) using a 1/2.5" sensor, one recording at 10MP and the other at 16MP. The one with the lower MP count will produce smaller sized pictures, less pixel detail, but far better image quality and low light performance that the higher MP counterpart for the same resons as explained above.
The two things that higher MP count will give you are higher image resolution - since you have higher pixel density - and a larger image size so you can make bigger prints in the end.
And while in the subject of phone photography...
Digital zooming is BAD for image quality, period. When you do digital zooming, you are basically cropping the image to the area you want to emphasize and then using a program that essentially
creates new pixel data based on the color/pattern of the surronding pixels to enlarge the image to the final size. This is process is commonly known as interpolation. If you most digitally zoom, is far better to just take the pic and then do the digital zooming with a full featured computer program where you have more control about the process and results.