I like this little camera. In broad daylight, the photos are great. Indoor or low light still photos look quite decent, good enough for memory book and regular prints, though not as good as my D-SLRs with fast lenses (but that cost 10x more). For low light still photos, the auto mode and Aperture priority mode work quite well. I use the Aperture priority with flash, along with f/2 and higher ISO, for the Las Vegas and Disneyland New Year Eve party photos. Both the people and the background lighting came out fine. The indoor Small World holiday photos (without flash) turn out pretty well. There is some visible noise when enlarged but good enough for Facebook and regular size prints. There is no spot metering, so brighter background lights can get blown out highlights, but this is as good as a compact can get.
It is small enough to fit in pants pockets and purse, can go anywhere you go. I took it to the peak of the snowy Mammoth mountains, party in Vegas, or hang out with kids in local venues. And will try do scuba diving with it soon (though cannot use TTL flash underwater like my D-SLR or G10). Obviously compacts will not do well for low light actions, but overall the photos turn out better than I thought.
The HD video works quite well, but for indoor video you need to change the white balance setting (otherwise the video has a yellowish tint under tungsten lighting, this is a problem for all cameras). For family video, this compact camera does not have the depth of field problem like my D-SLR (subjects getting out of focus easily if they move around).
Today I went to Best Buy and looked at the Canon PowerShot S95. I am currently looking for a fairly small camera that has great image quality and HD video. I am looking to bring this to some concerts so I can get some good photos and video. I thought the camera was great. I would try to move the camera just after I clicked take photo and it would turn out beautiful and clear. That is a very good thing for me especially because I tend to shake a little while taking photos. I didn't try the video but because of it being HD, I bet it's fine for me. If anyone has any comments on the Canon PowerShot S95 camera please comment. Also, if you know of any other nice mid-sized cameras under 400 that have HD video and image stabilization that you would recommend, please let me know! Thanks