A completely unsolicited review. Last night was my daughter's class performance of "The Pirates of Penzance" so I grabbed a camera I bought about a year ago, the Panasonic DMC-TZ5, and shot a bunch of pictures with the flash off. I didn't think much about it, until I downloaded the pictures, and then I was completely amazed by the quality of these totally automated snaps.
I'll let the pictures speak for themselves (you can click on the images to see them at full size) but technically speaking, I was zoomed about halfway in, shooting at the full picture size of 9MB, in regular automated shooting mode. I have not done anything to the files and bear in mind that posting a picture somehow always seems to slightly flatten out and diminish the image.
The camera is just slightly bigger than a deck of cards and when closed, the lens protrudes about 3/8 of an inch from the body, making it just out of true pocket size. That quibble is of course more than compensated for by the quality of the pictures. And it takes pretty good video too!