I am currently using a Nikon D40X, an SLR digital camera. If I would process my images through Photoshop Element 6 (the cheap version of the Adobe software) or even through Picnik free web software, they would hold up much better in web use. It only tasks another 3 minutes per photo, but I have been lazy (busy)!
If I were to get a point and shoot, it would be one of the Lumix brand. Many photographer friends have recommended them, but the Canon is also on the list. As for which Lumix, don’t know (I think it depends how much you want to spend…), but definitely with whatever camera you want the 28-105 lens or thereabouts. I think you have to hold them in your hands and play w/all the buttons and look through the viewing screen and see what works for you. M.