I recently upgraded to a Canon PowerShot S95 and I couldn't be happier with it. It makes 10 MP pictures, and has excellent optics. The 3 inch LCD screen makes it easy to set up your shots. You can also use this camera to take 720p HD video in stereo, and the quality is better than what I expected. Put an 8 GB SD card into the camera, and you can store 50 minutes of HD video. Wow!
The zoom / wide-angle range is plenty for me, and I take a LOT of pictures. One thing I really like about this camera is that it's "grippy." My old camera was slick, and unfortunately it caused me to drop it a couple of times (luckily onto a bed one time and onto thick pile carpet the other). But this one is easy to hold, and that's a feature I like a lot.
Another great thing about this camera is the size. It really is "pocket size," which makes it super convenient to take everywhere. And it powers up and is ready to go in 2 seconds, which is a lot faster than my last camera. You control it using two control rings, and they're easy to figure out. Using the controls becomes second nature very quickly. You don't have to go through countless menus to get to what you want, because the control rings are context sensitive. That's a really nice feature and I wish that all cameras were like that. I really couldn't be happier with my S95, and wouldn't hesitate to recommend it.

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