Add the Canon Powershot G series as well. G10 prob too expensive for your tastes, but G7/G8/G9 versions are still floating about, and I don't think there has been dramatic changes the last couple years. I could be wrong on that though. I wouldn't be 100% sure on UK prices.
As others have mentioned, these are sort of a 'bridge', some of the features of an SLR, but not all. They also allow the ability to add telephoto/wide angle lenses / hot shoe for flash etc. if you want, that basic point/shoot camera's do not.
Don't get me wrong, they ARE a compromise on a SLR, but i've been fairly happy with it on trips. You can adjust things a lot, and there's not often I take a shot and think it's the equipment that is letting me down, it's normally the operator  and having time to stop and mess about with manual settings!!! The main thing I find it's very hard to do is take shots with a shallow depth of field, which I think has a lot to do with lenses on these vs an SLR.
Take advice with a pinch of salt. I'm an 'interested amateur', no expert!!
Quote:
Originally Posted by Mermaid
I agree with Warthogs sentiments - regarding bridge cameras.
So .... it's still a compact, but how about the Panasonic Lumix TZ series? TZ6 has 12x optical zoom and a Leica lens. The TZ7 is the same but also does video.
I have the TZ5 and would definitely recommend it as a travel camera. Have a look at some of the reviews available on line.
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