My main P&S is a Canon G9 and I love it. It is heavy, but the picture quality is great for a P&S and the DSLR like ability to make adjustments makes all the difference. Doesn't hurt that I can throw on my speedlight from my DSLR setup when needed (although it gets a little awkward in use).
I bought my wife a Nikon for christmas (don't remember the model...in the ~$200 range). I've been pretty disappointed with it overall. Might be that i have too high a standard and was expecting more. Sure it takes pictures...but not very good ones in the auto modes. The flash is useless. This is just our party camera for my wife to tote around and take random pics without the bulk of my equipment or worry that it will be damaged. Regardless, not impressed.