Since the thread started in 2004, the past 5 years have seen major improvements in features and price.
My wife does photography (weddings, birthdays, engagements, etc...). She has some excellent equipment, however, not the type that i would want to deploy with. The idea of changing out lenses on a camera that would not stow away easily and quickly have turned me to the "point and shoot".
In the next few months in preparation for MOB (and upon returning and doing some surfing and diving with a waterhousing), after having researched everything from optical zoom, MP, weight, and size dimensions, the following is my current choice for the price for MOB:
Sony DSC-HX1
Key features:
9.1 mp
20x Optical Zoom
Wide angle w/ panorama mode
and the most convincing feature: 1080 HD Video
MSRP: $479 (online around 400 is some places)
Once i get it, i will post some pics and video samples.
.02