Sony's RX100 is no larger than Canon's popular S100, but has a far larger image sensor. What this means is simple: better photos with greater depth of field and superior low-light performance. David Pogue is among the first to review it , and finds himself impressed by a point-and-shoot camera that approaches DSLR image quality: "If you care at all about your photography, you’ll thank Sony for giving the camera industry a good hard shove into the future."
The caveat, of course, is that you will pay $650 for it. Apart from the minimalist looks and 1" Exmor CMOS sensor, that gets you 20.2 megapixels, an F1.8 Carl Zeiss Vario-Sonnar T* lens, 3.6x zoom, RAW image capture, and full HD 1080 video at 60p video with manual control (alas, no 24p).
Sony DSC-RX100 [Amazon referrer link]