I was going to buy a digital SLR camera before the wife and I went to Italy on vacation. Let me preface my recommendation by saying I had done quite a bit of film SLR photography back in the day, took a lot of classes and spent a lot of time in the darkroom developing my own prints and being artsy fartsy. I say this only because I know some of the SLR Elitists may scoff at a non-SLR recommendation.
After considering Nikon, Canon and Olympus Digital SLR's Here is what I bought:
http://content.costco.com/images/content/misc/pdf/ITW_408465_Panasonic.pdf
This Panasonic DMC ZS1 is an incredible camera for the money (~$250). It has a quality Leica F3.3 - F4.9 25MM Wide angle up to 12x Optical (300MM) Zoom lens. It has burst and video modes, stabilization, and very good auto exposure SW. I've been amazed at the clarity of the pics I took with it many under low light conditions in churches and museums with no flash It is compact and easily carried in an unobtrusive belt case. The latter advantage is non-trivial especially if you're shlepping baggage onto trains from one destination to the next.
The rechargeable lithium ion battery pack goes several hundred pictures between charges.
The URL has all the specs on the camera. I think this is one of the best cameras you can get that is Non-SLR.
I saw a lot of vacationers in Italy carrying SLR's around their necks like millstones, watched a Japanese tourist drop his hefty Nikon SLR on the cobblestones outside St. Peter's in Rome, and was really glad I opted for something more practical and convenient at a much lower price point that did 90%+ of what a Nikon D40 or the like would do. I'm usually, "that guy", that buys electronic gadgets, cars, and other equipment with far more features than I'll ever need, so this camera purchase was a triumph of common sense and I'm really happy with it anyway. Don't feel like I settled for less.
Just my $.02