I have the Canon SX110 as my "point and shoot" camera and it works GREAT! For not being a DSLR, it's awesome. I was always very happy w/ pictures with it and still am but I obviously use my DSLR more now. I love love loved the 10x zoom. Here's some pictures I took with it...
The only reason I wanted to upgrade to the DSLR was because it's more consistent with getting a good shot nearly EVERY single time you take a photo and because of the timing. I used to miss good action shots. But other than that, I'm just a technical geek and get a new camera every 6 months, it seems.