While everyone is going ga-ga over the latest 'big sensor in a small camera' (including me admittedly) There is still some image related advantages of a small sensor pocket cam - Macro shots are just crazy easy with these guys. Their small sensor means super depth of field, and while not so favorable for portraits of people, it's a plus on macro portraits of little creatures such as my six-eyed friend here.
I found this guy crawling around our campsite on a recent trip and grabbed this shot with my trusty Canon Powershot G9. I never used the viewfinder, I just stuck the lens about an inch away from this guy half pressed til I heard the 'beep' and fired - the wide DOF kept him nice and sharp. Lighting was provided by the built-in flash and what's neat is that at these close distances, the lens is closer to the subject than the flash is to the lens so it results in an off-axis light just like off camera flash but without all the triggers and extra gear. (I actually had to hold the camera upside down so the flash was close enough to light the subject, right side up, it was casting the light about 2 feet behind the subject.)
I think the results (make sure you click the picture to see it full size) weren't too shabby for a camera that cost less than 1/3 the price of good Macro lens for the DSLR.