Update Nov 25, 2011:  We list organization, current price range and recommendation.  We will look these over and add our opinions in a "best Point & Shoot Subcompact Digital Camera" article we'll publish later this year.  (We bought a Nikon Coolpix recently and love it.) 

• From CNET:
  
• Best consumer compact: $298-339: Sony Cyber-shot DSC-HX9V (Black)
• Best prosumer compact: $289-$399: PowerShot S95 
• Best interchangeable-lens compact: $599-$849: Olympus PEN E-PL3 black w/17mm lens

• Top 4 From Consumer Reports, best subcompact digital camera
  
• $350 Canon PowerShot S95 
• $300 Nikon Coolpix S100
• $250 Casio Exilim EX-ZR10
• $200 Canon PowerShot SD4000 IS ELPH

For cameras with more features, see Best Digital Cameras:  SLR - Compact Point & Shoot

2009 Article:
Start with "Consumer Reports" magazine:  Page 39  of the March 2009 issue of  "Consumer Reports" magazine (CR) ranked the best new digital cameras from their performance tests of 65 cameras.  Cameras were ranked on things such as image quality, speed (first and second shot delay), versatility, dynamic range, Max ISO, battery life, etc.    Subscribe to Consumer Reports

Next check the most popular models:  Often there is  "wisdom in the masses" so you should check a list of the  to see what others decided to buy:

• Best Selling Digital Point & Shoot Cameras

You may not always agree with all conclusions from "the masses" or "Consumer Reports", but at least we know neither is influenced by the need to sell advertising.

Final Step to selecting your new camera  Do your own research in the store as your tastes will probably be somewhat different from "the masses" or "Consumer Reports."

Also see Best Compact Digital Camera (more Features)  & Best SLR Cameras.

Best Selling Digital Point & Shoot Cameras

#1 Panasonic Lumix DMC-ZS3 10MP with Wide angle, Image Stabilized zoom and 3"LCD are great features! (#1 Top Seller) #2 Canon PowerShot SD1200IS 10 MP with Image Stabilized Zoom and 2.5-inch LCD - enough features for those who want to save $ #3 Canon PowerShot SD1100 IS ELPH  CR Recommended #4 Casio Exilim EX-S10  CR Recommended #5 Sony Cybershot DSC-T90  - CR Recommended the T70