I have a (by digital terms) ancient Canon g1 that just keeps working -- it has augmented the more serious cameras since it was purchased in December 2000. Great for taking digital notes, and I've had a couple of news photos published with it. My wife had a long-lived G2 that finally developed a harsh line across the frame, rather like a film scratch. For serveral years she used the G2 for newspaper work alongside larger cameras, and she is much more a photographer than an equipment person.
A year ago, I bought her a Nikon D40 to replace the Nikon FM2 that she no longer uses because she has no real need for film anymore. (I've never been able to convince her to get into rangefinders ... she's too wed to WYSIWYG viewing). She immediately hated the D40. Too large compared to her Canon G2, no preview screen (she's long ago moved beyond the eyelevel viewfinder and loved the G2 for its ability to be held at strange angles ... i don't think she's taken an eyelevel photo in half a decade). So she kept using the G2 and I use the D40 as a grab-and-go camera when the film RFs aren't going to work (birthday parties for kids).
Anyway, got her a G10 this holiday and she loves it. She wishes the lens were faster, because she always shot the g2 in unavailable darkness, f2 and 1/6th of the second. With IS, she can go even slower, so that helps.
She wishes the viewfinder would swivel like the older models, but most of the time she can see the image because of the quality of the screen in being viewed from odd angles.
She carries it over her shoulder, though it does fit into my jacket pocket as well, and she has thrown it into her purse.
The 28mm lens is just remarkable useful. The fact is, that, though the lenses are too slow, this G10 has the exact same lens range as my Nikon RFs without auxilary finders -- 28 to 135mm. ISO up top is very nice because that's a control we use a lot, trading off speed and quality for almost every shot.
Battery life isn't nearly as long as earlier G1/G2. We're just taking family pictures with these camera (even my RFs) but I seriously considering a G10 purchase for my office. These days I hlep run a government press office, with folks who do considerable traveling, and sometimes a DSLR is just too much camera when you're juggling several other projects simultaneously. Plus the movie mode is a good bonus for grabbing quick video.
For walking around, I still carry my film RFs -- mostly to get pictures of the kids and the stray work photo -- I use my Nokia cell phone for digital backup since it's always with me and has a 2MB capture via a lens with about 25mm coverage.