Love my Pentax Optio S4, you may want to see if you can find just the S (3mp) since you aren't concerned with the latest and greatest. BTW, the new Olympus Stylus Verve looks great.
I have the Pentax Optio 4Si, slightly larger than the 4S, but improved in a few ways (for one, it has a charging cradle). Super-handy for travel -- at about 4oz you don't notice it when it's in the belt-loop leather case you can get for it.
I love my Pentax Optio S4. 4 megapxles, 3x zoom, and takes very good pictures for being so small. I carry it with me just about everywhere (in a soft case I got at Target), and that thing can take a beating. I have sat on it, it has fallen out of vehicles, dropped numerous times, etc. and it still works.
However, thier is a tradeoff with the small size. My buddy who has a Canon s400 takes noticebly higher quality pictures. Mine look kind of soft compared to his..but his camera is a bit larger.
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