I bought a new camera yesterday - what is known in Europe as a Canon IXUS 70, in the US a Canon Powershot SD1000. This is an entry level sub-compact point and shoot with some quite good credentials. And it really is small! My main reason for buying this camera was indeed its size - the Nikon D200 with large lens is just a bit awkward sometimes, even if it is a great tool.
Results will soon start to show up on Flickr.