Our household has always had a "small" and a "big" camera. My wife typically uses the small one and I use the big one. (Once I got a Canon 20D SLR, the former big one became the "medium" one.) This Christmas, I figured it was time to upgrade the small and medium cameras, to get better resolution, low-light capability, storage capacity, zoom, movie capability... and lots of other things.
For my wife, "pocketability" was the main factor holding her back from taking the camera everywhere, so the small camera got upgraded from a Canon S30 to a Canon SD700 IS. It actually has a bigger screen than the Canon S3 IS that we also got! Most of the familiar Canon controls are there, but in different configurations that present a bit of a learning curve for long-time Canon users. For example, the mode dial is on the side; review mode is a choice on the mode dial, so you can't just hit the shutter button to resume taking pictures; and "Manual" mode just lets you adjust things like flash and white balance, not shutter speed or aperture.
I'll put a full review up on Epinions.