I use the Canon Powershot s30 no longer available, 3.2 megapixel. It's been replaced by the A70 or A80. It's a good camera but I'm sorry I bought it cuz it's too small for my hands. It's no bigger than those cheap instamatics but a lot heavier and I aways have the feeling I'm going to drop it. The newer models are designed with a nice grip like a 35mm.
I have to get a digital camcorder next. Looking at a Sony HC-65 that retails for 699 but is available online for $385, new.
With film cameras, I kept the same one for years, for decades. With digitals, I feel like I need to upgrade. What a waste.