Just came across this article comparing the Galaxy S6 camera to the Sony RX100, a €350 compact. It's not quite there yet, especially when you zoom to 100%, but I'm very impressed with how close the results are. It's amazing how quickly these things have improved, though maybe not so surprising considering it is one of the prime features of smartphones being carried around by nearly two billion people.
With so much funding behind it engineers have managed to make all kinds of innovations tackling some of the seemingly impossible obstacles inherent in having a smaller camera. I'm convinced they will keep doing so and the gap will be negligible in a few years.
Even at this point I don't think I will be buying a compact camera again but will go for a high end smartphone instead. Besides the much better form factor a smartphone can also do things like GPS tagging, timelapses, 4K video, slow motion video, HDR burst. And there is a large choice of apps allowing you to get your favorite interface and features.
A top of the line expensive smartphone now also looks like a much better deal to me as it saves me from buying a compact.