There are lots of good point and shoot cameras out there. It just depends on what features are important to you. Here are some of the things that are important to me: camera raw out option so that I can post process, AA batteries instead of a proprietary battery (chargers are more stuff to lug and keep track of), a viewfinder in addition to the LED screen. A lot of these cameras are going to LED screens only. They are hard to see in bright sunlight and impossible to see if you wear polaroid lens sunglasses. Other good camera features are a decent wide angle at the shortest focal length, CMOS sensor for low noise in low light, minimal distortion and aberration, minimal delay when taking a picture, good battery life, and of course ease of use. I also like a swivel LCD screen for when you can't just point the camera, but that's not a necessity. For these reasons I have owned Canon cameras. Others are catching up, but Canon continues to set the bar.
If you haven't visited this site, check it out for more reviews then you can imagine:
www.dpreview.com
Here are their top 5 compact camera picks:
http://www.dpreview.com/articles/6698413448/dpreview-recommends-top-5-compact-cameras
FWIW, a buddy has a Canon S100 (now the S110) that I have tried and I have to say it's pictures are quite impressive, especially from such a tiny package.