Andre has posted some pretty impressive shots made with a compact Panasonic/Leica camera, and if I was looking for a small camera, that's where I would start. I love my Canons, but I still have my Olympus 3040 Zoom for times when I want to have something compact to throw into a pocket of a parka, hunting jacket, etc. It's just a bit big for a shirt pocket, but still handy to have at times. Plus, I can set the presets for my wife (flash/red-eye reduction/optical zoom only, etc) and she can turn it on in program mode and get pretty good shots of family functions, birthday parties, etc.