Panorama mode has been available in phones for years now. For some odd reason, Apple waited until the 6th iteration iOS to include the feature. However in Apple style they took the feature and perfected it, like they usually do (except Maps of course which is a mess!). Many of the panorama pics I have seen that are taken with the feature are actually pretty amazing coming from a phone and you can barely tell where the stitching of the photos is when done correctly. Here are 20 amazing panorama pictures taken with the panorama mode.
Also many seem to think the panorama mode is exclusive to the iPhone 5. It's actually part of iOS 6 and will also work on an iPhone 4S.