I have just bought the baby Canon s95 which has a 10 MP 1/1.7 sensor and RAW capability. An extensive review will follow. Initial impressions are positive with a solid, well made body and really good controls for a compact with an EOS style rotating wheel on the back and a ring around the lens that can be configured to perform one of several functions such as ISO, exposure correction etc.
All this and it fits into my jeans pocket!
Wayne John Grundy's PhotoTech Blog 
Hi Wayne
I am thinking very seriously about getting a S95 too. I like the fact that it is small and does Raw.
Have you discovered any drawbacks?
Chantal
I have found two drawbacks,
1. The flash is not very powerful, so nighttime flash shots tend to be underexposed,
2. When bracketing exposures, I cant find a way to bracket by more than +/- 1 stop.
The cases seem to be in short supply, I have been waiting 6 weeks for mine to arrive.
Overall it is a revelation to have a pocket camera that delivers good results – I take it with me everywhere, but it wont replace your DSLR!