I'm not really sure. I love photography and would really like a high-quality one that will let me continue to take beautiful pictures! Price doesn't really matter. This is going to be an investment, so I really want something that is light and will make photography fun!
canon powershots are great. i know it's been said before, but they're really amazing for a "regular" consumer camera...so many settings and features that let you experiment and explore but not so confusing that you can't just point and shoot too.
I hadn't even thought about an SLR in digital...I think I'm leaning more toward point and shoot for the portability factor (I'm planning a trip to France in February and would like something that will give me beautiful photos, but not a lot of bulk in a purse.
I second Canon it's great for a point and shoot. I have a photographer friend and he keeps the SD450 as his "fun" camera when he doesn't want to lug the SLR around.
some quick recommendations in no particular order:
hp photosmart r817, canon powershot sd700, sony cybershot dsc-p100, nikon coolpix s7c
canon, sony, nikon, hp, fuji and olympus all make very good cameras, so i'd look for certain features and just buy the smallest and prettiest one i'd look for anything above 5 megapixels (preferably over 6), at least 3x optical zoom (not digital zoom!), some sort of anti-blur technology, a larger LCD panel since the small ones don't give you an accurate indication of your photos, and a manual focusing option if that's what you're looking for.
pcmag and cnet are great places for editorial and consumer reviews.