I really like my Canon SX110, which cost about $250 last year. I’ve taken all kinds of pictures with it and have been impressed with the quality. It looks like the new, mildly updated SX120 is now going for the same price.
Pro:
Manual controls. Aperture, shutter speed, AF mode, metering mode, ISO, white balance, etc. The available settings and their location on the camera are nearly identical to Canon’s entry-level SLRs (Rebel series).
Lots of automatic modes. If you or whoever is taking the picture doesn’t want to fiddle around with settings. There is usually an auto mode that will produce a nice picture.
The long end of the zoom range is 360mm equivalent, which seems long enough for everything you’re likely to shoot.
DIGIC 4 processor.
It has image stabilization, which is always nice.
In addition to a very good ‘macro’ mode (actually a close focus mode) it has a workable manual focus mode.
It takes AA batteries. You can get 4 of the newer low-discharge kind (Ni-MH?) for about $12 plus a good charger and take pictures all day and night.
The flash is disabled unless you tilt it up by hand. Not a big deal to some people, but I like never worrying about setting it off unintentionally.
Con:
No RAW mode. Which is fine by me, as it seems like overkill in a point and shoot.
Not super-compact. It will easily fit in a jacket pocket or a purse, but not the pocket of your jeans.
Flash cycling is a little slow.
No viewfinder, which can be annoying, but few small cameras have one anymore.
No HD video. Not a big deal for most.
It only goes to 36mm, which is not all that wide, but still sufficient for many landscape photos.
Plastic body. I prefer it, since a scuff is better than a dent IMO, and anything that would shatter the plastic is likely to trash the camera no matter what it’s made of. But some people really want metal.