When looking for a camera there are a number of questions you need to ask.
For this camer, the following applies
Is it good for beginers - Yes Is it good for the serious user - Yes - plently of options to fiddle! Does it have image stabaliser - Yes Does it have zoom - Hell yes! 12X Is battery life good - Yes - on holiday in Italy useing 4 X rechageable AA with full quality pictures on a 1gb card i took 300 + pictures plus 2 videos and did not have to change the batteries at all. Use the viewfinder instead of the LED and it is astonishing Is the LED good - Yes, not as big as some others, but its swivel ability gives you so many options. But you should not use it all the time when you have an electronic view finder. It folds away and so does not get finger marks Are the resulting pictures good - Yes. Minimal tweaking on editing progs like Picasa2 will sharpen and boost the contrast a little. Is it good in doors - Not bad, could be better, just be sure to keep the flash on Action shots - Yes - very good. Panorama shots - Yes, and the Canon stich program and editing software is blinding! Video - Superb, with sound, more than enough for the casual takes. Heavy - Not really, nice balance if held properly. Down side (hence the 4 star and not 5) - Lens cap keeps falling off. Although a big improvement on the S1, the zoom is still a little slow on focusing. Unlike the S1, you have to manually raise the flash.
Summary - a lovely camera, with more than sufficient pixel (6mp) any more and you probably would not gain anything. Zoom of 12X is brilliant, no need to even think of digital zoom. Handles well, and over all as an owner you would not be feeling you have wasted your money. You would be hard pushed to get this much packed into any other camera with such a superb inbuild software.