My brother got a Sony DSC-W230 as a compact alternative to his Canon S3-IS, and he uses it all the time. I have only seen him get his S3 out once or twice since he got the Sony. It has really good color, and it's not expensive.
I got the Canon S90 about a week ago and really like it. It fits in your shirt pocket. Even the small tee shirt type pocket. It has the controls if you want to be creative or need to adjust for a certain situation. But I have been shooting mostly in auto. This is my fun camera. I bought it to just shoot. I bought it for the I wish I had a camera moments. I really like my 50d but I'm just not going to drag it around with me as I go about my day, go out to eat, to the movies, shopping, whatever. I can the S90.
My suggestion...if you already are shooting with a DSLR and are looking for a 'compact' alternative (when you don't want to lug around a DSLR) do not get a 'bridge' camera (like an S5IS, etc). They ar not small enough to be truly 'compact' so you'll just end up using the DSLR anyway. FWIW, the S90 has been getting very good reviews and is a truly pocketable compact camera.
