Canon PowerShot S90
I've had a Canon S90 for a couple of months already and in that short time have already managed some really nice shots. It's barely larger than a candybar cellphone and the picture quality beats anything I've seen from a similar-sized cameras. I always felt the G10 is a touch too big to carry at all times, and the S90 fits this role perfectly. Lightroom 3 handles the noise really well if you shoot raw, though you will definitely need something like PTLens to straighten up the barrel distortion at the wider settings (if you shoot JPEG the camera corrects it internally but only partially; PTLens can fully correct the JPEGs too). As with other PowerShots, the IS is unbelievably good - here is a hand-held sample at half a second:
And to illustrate just how tiny it is - here's mine next to an AA battery (you might also recognize the Gordy's camera strap it's wearing):
Nikon expert Thom Hogan has posted his views on the S90 and sums it up much better than I could. I find the S90 a great camera for those times when I don't feel like lugging my SLR around. And since I've had a chance to handle the Olympus E-P1, I really don't lust after a m4/3 camera anymore even though I'm sure it's technically a better proposition.