xyzzy - My mom uses the 800IS, which is the predecessor to the 870 with the same lens. My sister uses the 870IS. Both produce great shots with very good exposure and color, and the IS is very effective. The only thing I notice is the barrel distortion at the widest setting. But that's pretty normal for a compact wide-angle lens.

I'll say the only competitors to the SDs worth looking at are the Panasonic DMC-FX series (like the current FX33). They are often a little cheaper, most with an excellent Leica wideangle lens that also start at 28mm. I think the lens is better on the Panny than the Canon, but the pictures I've seen from the Pannys seem to have too much sharpening straight from the camera. You may want to look closely at those too.