I'm looking for a compact, simple P & S for my wife, who isn't a techie.   Image quality is not the issue and it doesn't need 12 MP - these will be just casual and travel photos to share with friends.   What we want is simplicity - the fewer features, capabilities and 'modes' the better. 

About the only useful feature might be optical zoom (and not some cr@p fake digital 'zoom' ).  And I want it to show up on USB as a drive - with no crummy dedicated software needed just to get the pictures downloaded.

Simplicity, ease of use, are 90% of the decision. The other 10% would be quality, which is hard to predict.  If it can take nice low-light pictures on its own, because its firmware is incredibly smart, that's great.  If getting nice low-light pictures is possible only by tweaking a set of options via menu settings, forget it.

Any doofus product manager can cram 'features' into a device until it becomes a nightmare.  It takes good engineering and design to make something truly simple and easy to use. 

So I come to the highly knowledgeable people on this forum, to ask for their experiences.

The Canon PowerShots have always been sturdy, reliable and simple. I own an earlier version that takes photos that have been accepted as microstock (not the only camera I use). They fit in small spaces (pocket, purse). The A3100 is currently available at a great price -
http://reviews.cnet.com/digital-cameras/canon-powershot-a3100-is/4505-6501_7-33948036.html

I guess I can't say I've actually used this camera... just read about it and saw it in the store, but I liked the controls and how compact it was.

Canon S95

I agree there is a bit of a 'mode' overload on cameras these days :S

I recently bought the prior model, the S90, and like it a lot for snapshots.  Has a very good auto mode, but more control if you want it.  Uses the sensor from the G11, so nice IQ. 

How about the Canon Powershot SD1300 - around $100.
http://reviews.cnet.com/digital-cameras/canon-powershot-sd1300-is/4505-6501_7-33975897.html?tag=also
And Casio Exilms are not glamorous, but reliable and sturdy with a proven track record.