Wallet sized, perhaps. I have a 3.2 megapixel and it’s “okay” for a “not” full page printout. Of course, it also depends on the camera, but the 2.1 megapixel thing is just starting to come out of “webcam” quality.
You can pickup a lot of 6 megapixel – 10 megapixel “consumer” digital cameras for $150 or less these days… great for full 8×10’s and even some larger sizes.