My favorite travel compact is Canon S95. Its has great overall performance (great scenery, great daytime portraits, good low light still images, good macros and a decent HD video). Its fill light works great in high contrast scenes. Night flash in pitch dark is average, but none of the compacts in the market stands out anyways. It response is quick and I don't notice delays like many other compacts, even in lower light settings (works well even partying in night clubs). It does not do low light actions well but none of the compacts in the market do. The only thing you don't really have is the long zoom range, which is usually not crucial for travel photos. Long zoom range is more important for sports or performance (a professional D-SLR is better suited for these types of photography).
If you add the Canon underwater case, then you can even go snorkeling, scuba diving, shoot in storm, sand, or other harsh environments.
It is small enough to keep in your pocket or purse. Anyone can operate this little camera and get great pics of you and your family. Its auto and preselected scene functions work well (almost idiot proof).
Image quality is great. I recently took this sea turtle photo in my trip to Kauai while scuba diving. Underwater lighting is always tough, and neither the turtle nor me can hold still for the shot. But the photo turns out well, which speaks a lot about the high performance of this little camera.
http://www.flickr.com/photos/hjfok/6151676485/