So I took the plune and got myself a digital camera with those tax returns that finally showed up and I have to say I am incredibly please with the results. The thing is beautiful and perfect for my needs. Fit in the pocket of my favorite jeans, huge screen (2.5"!) and 5 megapixels (what do I need more for?)
If anyone is looking for a camera to take to bars and parties, this is it. I am stunned by how great it is. The only drawback is the sub-par video performance, but that wasn't reallyh a big deal in my decision making.