The problem again with this camera isn't the resolution unless you are looking to crop (zoom) or print. The biggest challenge is that it is calibrated to pick up fine details within a limited dynamic range meaning that if there are intense brights and darks in the scene it won't do well across the spectrum. For many common shots the camera is great, for others HDR (I'd use third party app) works best.
Here is a short write-up that explains this using a histogram and some samples to illustrate it: Productastic | Tech, Toys and other fun stuff by Heath Cajandig
R
Very interesting but I'm not sure I can agree with your assessment about the cameras dynamic range.
"The problem stems from the fact that while Ultrapixel camera is fantastic at picking up subtle differences within a range of lighting, it is very poor at dealing with situations where there is a very wide range."
The dynamic range "should" be better, not worse, than other camera phones due to the ultrapixels. The fact that you got the same results in the alley with your point and shoot should have been a red flag. It's beyond silly that you assume the the iphone, with a smaller dynamic range, would not have either saturated on the sky or under exposed the scene.
edit: I see that you did say you thought the iphone would have lost some detail on the bricks. This is simply a function of the camera software. You just can't get around the fact that an ultra pixel sensor will be able to capture a wider delta between the lights and darks than a normal sensor.