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I'm in the market for a new digital camera. Mine is 6 years old and a bit clunky. I'm looking for something that: can fit in my pocket rather than my backpack, takes great pictures, can create good panoramics, and can take a beating. Does anybody have any recommendations.
I have a Pentax Digital SLR which I really like. If you want a small point and shoot I'd go with one of the Canon Digital Elph Cameras (I forget which Powershot it is maybe 640?). The PowerShot A540 is also very nice but a bit larger. It takes 2 AA batteries and is 6 MP with a 4X Optical Zoom. I bought it for my son for graduation and it has worked well. Make sure you get one that takes AA batteries. It's nice to have spares when you're backpacking and they tend to go fast once the weather gets cold.
Along with my film SLR camera, I carry a small point and shoot digital that I carry in my pocket, it's an Olympus Stylus Verve. I like it quite well, it's small and sleek. It's a very rounded camera which makes it really easy to hold and slip into my pocket. Supposeadly it is fairly durable and good at keeping dust out of the inner workings (this may be salesman-hype though). While I haven't tested it, it's also supposed to be quasi-waterproof.