I prefer the battery packs over the AA's. Typically you get much more shots and its just much easier to deal with. Also, battery degradation isn't that bad and even if it does occur then you can easy score a cheap battery pack off ebay (they are very easy to find and cheap).
Furthermore, you are really limiting your options by just looking at canon. Give the Fuji F30 series a shot (either F30 or F31fd). They have the best sensor ever put on a compact, it has a good 2 or 3 stop advantage over any other compact on the market and it can be had for under 200 if you look around- give it a good look!
For canon though, I'd try out some of the older G series cameras (G3, G5, G6), they are terrific compacts with fast lenses f2.0, raw, and a great design. I currently have a G6 and its a great tool.