What uses does the Camera item have?

In the XBLA port of Spelunky, there is a Camera item in some shops. The journal doesn't say anything much about it. It didn't seem to have any effect on the enemies I used it on, though it does stun damsels and I've heard it enrages shopkeepers.

Does this item have any useful purpose?

Solution 1:

It stuns enemies as well providing you catch them in the "picture" box, and will light up dark levels when the flash goes off

I can also tell you from experience that people playing with you might not appreciate you flashing them repeatedly with it :)

Update: Just discovered it will kill undead and bats instantly too