I have the SD10, and I tell people that based on your needs it is either the best camera ever, or the worst. I wanted a tiny camera, with good resolution that I could use to capture people and events, but nothing too intense. I'll use it if I go out, or at a party, or on a trip, etc. The pictures are great, but I'll warn you that red eye is a problem b/c the camera is so small. I photoedit the red eye out but not with iphoto, which does a really crappy job of it.
The camera has a great "gee-whiz" factor, which I'll admit is important to me. Every time you pull it out people will ask about it, and when you tell them it's 4 MP in that tiny little body, their jaws drop. It's got a solid feel as Canon's tend to do.
I don't feel the lack of the optical zoom, but again, I don't take pictures that require it. If that is important to you, go a little bigger but stick with the caons. My sister just got a camera, but she wanted the optical zoom so she got the S400 I believe, which feels tiny unless you have the SD10. To me her camera feels like a small aircraft carrier.
