I see the Canon Powershot TX-1 is available now. It looks like an amazing piece of equipment. Tiny. 7.1 megapixel still camera with a good 10x zoom lens and great electronic bits behind it. But the real winner is that is shoots HD video (1280x720 at 30 fps). All to an SD or SDHC card. It sounds a little fumbly for the average dad that just wants to shoot his kids being cute, but for someone that can deal with a few quirks and the tiny, shake-prone size, it practically puts an SLR and a pro-level HD camcorder in your pocket.
Trying to talk myself into selling my Canon Powershot S3 IS to trade up to the TX-1. Maybe when the price drops down one more bump.