I just sold my PowerShot G5, which I liked a lot. All Canon cameras are really good. I just bought a Kodak EasyShare Z740, and so far, so good. Takes very good pictures, and it is VERY easy to use. PLUS it has a 10x optical zoom (yes, optical, not digital)!!!
It's a 5MP camera, and though it won't fit in your pocket, it is reasonably sized. You should check it out.
Juan