I have briefly owned and sold many, many compact cameras looking for one that suits me and so far my Canon SD700 IS wins in my book. The Panasonics have way too much noise for my tastes, the Fuji F20/30 was great in low light but I was not happy with daylight shots or the media card. I really liked my Sony P150 and can't remember why I sold it... possibly to get something smaller.

The Canon A620 was great as well but too big for my purse. The Canon A710 IS was great good too but I hated the long delay between flash pics. It was also a bit big for my purse. (Seeing a trend here?) Anyway, I now own a Canon SD700 IS that I bought used from B&H that I wouldn't part with for twice what I paid. It's certainly no DSLR but it's a nice "purse" camera when I can't carry around my 5D. Sure, it's an older model but it has IS, is small, has great image quality and it got a great review at DPReview.com. (
http://www.dpreview.com/reviews/canonsd700is/) I would love to have one of these with the 28mm wide angle lens but the two newer canon models with this feature (SD800 and SD870) are mired in the Digic3 over-processed-by-noise-reduction problem on anything over ISO200. Of course, this is just my opinion. Many who own these newer models disagree with me on the image quality, from what I read in the DPReview forums, but by my eyes I've got the better camera.

I've had a few shots accepted using it so it can't be all bad.
Now if I were looking for something a bit bigger than this one I'd probably go for the G9, especially to have RAW. It's a bit too big for my purse though.

Maybe one day someone will make my dream camera. Good luck in your search!