My friend was on the hunt for a new point and shoot this weekend. I can't pretend I am up to date with all the new point and shots coming out every week, but it's fun to catch up every once and a while. So I put in some hours researching and reading up on the latest and greatest to help him out. It came down to two cameras in the end which happen to be brothers both part of the Leica family. Panasonic LX5 and a Leica Dlux 4. After much debate he dropped in on the panasonic at half the price of the Dlux.
http://www.dpreview.com/news/1007/10072110panasonicdmclx5.asp
http://www.dpreview.com/news/0809/08091502leica_dlux4_clux3.asp
In the end you can get nice pictures with any camera, but having a good camera does help someone realize their vision and bring it to life. A good camera makes it easier and makes it fun. If you shoot with a camera that you enjoy shooting, your images will be better for it. Have fun Mark!