Environment
Answer
Yes. A phone that's no longer active should still work fine as a camera. Canceling service won't render the camera inoperable.
Additional Notes
Your phone will still receive a data while connected to WiFi, similar to how a tablet works. Thus, backing up photos to Google Photos would still work with a WiFi connection.
Photos would still save to the phone's memory and/or SD card (if applicable; not all phones have an SD card slot).
A deactivated phone will also work as a media player without active service
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