You know, when Willhelm Röntgen discovered x-rays in 1895, and it was noticed that they could see through a person's skin, people feared that they had lost their sense of privacy, because they could show your insides. Inventors had even created lead underwear 'for the modest' to keep themselves from exhibiting what they didn't want exhibited.
In public places, you don't have privacy. If you're going to make a fool out of yourself, then you deserve to be photographed. You're going to be photographed at the police station anyway, if you're caught doing something illegal, so you might as well get used to it. And remember, there are cameras set up in malls, casinos, gas stations, and even stop lights, so if you're caught picking your nose, what's the difference between doing it discreetly and it being caught at a stop light, or if someone sees you and taking your picture with a camera phone?
And althogh it's illegal, if you don't want someone taking a quick snap up your skirt only to discover that you aren't wearing panties; well, you could put some panties on, or better yet, wear pants. I have found, though, that most women who don't wear panties have at least a little bit of an exhibitionist in them. Not all... but a lot.
Personally, I don't use a cell phone enough to even warrant buying one which has a camera built in. It's too much money to spend. I can use that money to buy another memory chip for my own camera.