If you already have a serious camera and need a pocketable model that you won’t be disappointed with, get the Canon PowerShot SD870 IS.
Even a seasoned pro will want a camera that slips easily into a palm or pocket every once in a while. But if that’s the camera you have with you when you find yourself with the photo op of a lifetime, you won’t kick yourself as much if you have the Canon PowerShot SD870 IS (street price $300 to $400).
One thing to note is that being a point-and-shoot (on steroids maybe, but a point-and-shoot nevertheless), the SD870 IS doesn’t offer any manual exposure controls. Still, it offers enough exposure modes to suit almost any scenario, and the "manual" mode does offer some control with settings like ISO, Metering, White Balance, Color modes, and more.
The SD870 IS uses Canon’s excellent DIGIC III processor and optical image stabilization and gets good marks for performance and image quality across the board. CNET says “The PowerShot SD870 IS yields very high-quality images with accurate colors and tons of detail, and which are very clean at lower ISOs.” Even the tough reviewers at DPReview were impressed, pointing out that although most wide lenses exhibit a degree of chromatic aberration and corner softeness “our tests and experiences with real-world shooting show very little evidence of these expected shortcomings.”
So, to recap, my picks for the best cameras to buy yourself this holiday season are:
The Canon PowerShot G9, if you really want a DSLR but need something more portable.