*two month bump*
I became busy with some things earlier and this purchase sort of fell by the wayside, but I've looked into it a lot more during the last few days. I think I have a better idea of what exactly I'm looking for now, ideally anyway:
good white balance and accurate colors, especially under incandescent lighting
fairly good flash
reasonably low noise, edge distortion, fringing or other artifacts, at least on low ISO settings
image stabilization
memory card should appear as a normal external drive when the camera is connected to a computer (this is highly preferable)
3" screen
I'm looking at cameras more around $250-300 at this point. I will probably be using this for a few years, so I figure it won't hurt to spend a bit more if it will be worth it. Although at the same time I'm basically a casual user and don't want to shell out for an SLR. My understanding is that these point and shoot cameras are generally not good at higher ISO settings and often require flash to get good pictures indoors. This should be fine for my purposes though, assuming that the colors turn out okay.
I have kind of narrowed it down to a couple of models now: the Canon SD850 and SD870, and Panasonic TZ3 and TZ5. The SD850 generally seemed to do the best on DP Review's tests, but the SD870 has a bigger screen and a wide angle view. For both of the Canons, I have seen some complaints about ergonomic issues, like the design/placement of certain buttons and the cameras being slippery to hold. The Panasonics seem to be better in this respect, just from the pictures I've seen. I especially like the TZ5's big, high resolution screen, but it's on the expensive side and I have also read about the TZ3 (which is apparently similar) producing blurred images due to aggressive noise reduction. Is this a problem in practice? I will be heavily downsizing the pictures anyway (probably to 1600x1200), as they will be primarily used for viewing on a computer and not printing.
What is the practical benefit of wide angle, by the way? Is it useful for indoor shots?