Which camera is better: An old General Imaging x500 Digital Camera or an iPhone 7 front camera?

It looks like an iPhone only offers 7 MP while this camera boasts 16 MP but this camera is so old and looks worse at least on its own screen. I'm confused

Check how the pictures upload to your computer. Generally the higher the megapixels the better the quality of picture.

With a tiny CCD sensor (1/2.3") that is circa 2011, the GE camera is probably a POS, especially trying to push that many pixels in a small sensor. I'm guessing the iPhone will give a much better image since the sensor technology is much better these days. Even though the iPhone has a smaller sensor, they smartly kept the number of pixels to a reasonable amount to preserve quality. What is key is the actual pixel area (larger area being better), not number of pixels. Anything in 5 to 10Mp range is fine for a phone camera.

Between an unknown camera brand and a phone, I'd rather not choose.

Iphone 7 is better
Reason - Due to the use of better post processing algorithms inside the camera.

"It looks like an iPhone only offers 7 MP while this camera boasts 16 MP"
The megapixel count tell you nothing about the image quality you can expect from a camera - have a look at the link. The only way you'll be able to tell is by taking pictures with both and then comparing them.

Choose another DSLR camera option.

In Britain I do not know the brand "General Imaging" but I suspect it is a cheap imitation of a good mobile phone. I'm always wary of those unknown brands, which seem to be on sale far more in the USA than in Britain. Are Americans more gullible?!

I'd guess the iphone.