[Number 3]

It all depends on what you want to take pictures of and what you want to do with them.

Snapshots are fine on an 8 MP phone camera. So if you aren't making prints and you are only sharing on line then don't waste your money. For $300 you aren't getting that much better.

Now if you want to learn photography skip past any small camera and go right to a DSLR. An SLR will give you the flexibility in lens choices, shutter and aperture adjustments that will allow much better pictures.

My opinion, and I'm not an expert but I've been into photography for many years, you aren't getting much more than your iphone 5 with a little point and shoot. A point and shoot will have a better lens and a better flash. So your indoor photos will be better. You will also likely have at least a little of bit of optical zoom with a point and shoot. Your iphone will only be digital zoom. So if you plan on taking shots at a distance you will notice a bigger difference.

It's just a continuum of use. I use my iphone more and more and leave my DSLR at home more often simply for the convenience. Unless I am indoors, my iphone does a decent job. Of course my DSLR is a few years old and is only a 10 MP camera.

So can you describe the types of pictures you want to take?