Hey, you're not the only one. Putting 28mm on the wide end is what really helped make the G10 interesting to me now. It would have been great if they could keep the fast aperture of the G2 or G3, but with the good stabilizers now it's not that big of a deal. I hope the lens is nice & sharp across the zoom range. That's what I'm waiting to find out now. Shouldn't be too long before some nice reviews are online.
I have a SD870IS to use when I don't want to take a DSLR, but I'm not all that happy with the image quality. It's just ok. And no Manual mode.
Although the G10 is bigger than that, I think I'm willing to accept the size for a much more capable camera. It does look interesting.
At least on the G9 (and I will bet also on the G10), the increased MP's lead to more detail in the image at lower ISO settings. True, this breaks down as ISO increases. But, even at ISO 400 you have as much detail as cameras with lower MP count. With something like the G10 that supports Canon flash, you can use a bounce flash and diffuser and keep ISO low and get better results.
What is less clear to me is the effect of MP on dynamic range. My Fuji F31fd (low MP, high ISO champ) has limited dynamic range. This is area that appears to be improving with this year's cameras. My new Panasonic LX3 is better than my G9 (and Fuji F31fd).
Well—the LX# has a larger chip, I believe, and only 10Mp, and is definitely something that you can carry in a shirt pocket. I am very happy with the LX3, and really disliked the G9.
As well, there is a HUGE difference on the wide end (24 vs. 28). Of course, the G10 has a much longer tele—but ƒ4.5 on the long end is not as interesting to me as ƒ2.8 (even considering the focal length).