I am one of those people who thinks that photographs are so important that I always need to have a camera. I always want to be ready in case some interesting new sight appears before me, to try to capture it. A cell phone is just not good enough for that, and like many serious photographers I have struggled to find a compact camera that provides good control and excellent photo quality.
I use a Canon 20D or Digital Rebel XT digital SLR when photography is the main objective of my day. While the Rebel XT is one of the smallest cameras in its class, it is still too big to carry around with me all the time, so I have experimented with a variety of smaller cameras. One of my favorites has been the Canon 70, which complements the XT very well, as they both use the same battery size and the same memory cards.
Unfortunately, neither the S70 nor its upgraded sibling the S80 are in production anymore. The S70 and S80 are not super-compact, but they will fit in a shirt pocket (with a bulge) or a small belt pouch. It is a very capable camera, with superb image quality at its lowest ISO setting of 50. The camera's range can be expanded even further by the use of auxiliary lenses, even to the point of obtaining an ultra-wide angle view. You can read about that by clicking here.
With the advancement of technology, I have sought for something even better. Newer cameras have image stabilization, which is quite useful in compacts as they don't take very good pictures at higher ISOs. Two newer cameras that have this feature are the Canon Powershot G7 and the Nikon Coolpix P5000. I have recently written a review comparing them, and you can read that by clicking here.
Image stabilization doesn't help you with moving subjects, and for that you need the DSLR with its capability of shooting good quality photos at high ISOs that permit fast shutter speeds in dim light. However, most of my photography is of "still lifes," such as landscapes and architecture, and there image stabilization can be quite useful.