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I like some of Canon's slightly higher-end compacts, like the SD870/880... I dunno what the current equivalent to those is, apparently those are being phased out (or are already gone) even though one's like a year old and the other's barely 6 months old, go figure. Anyway, the thing I really like about those models is the 28mm wideangle lens, it's awesome for panorama shots and group shots and that sort of thing. I own the SD870 and I gave my sister the SD880 as a gift for Christmas, both have turned out great.

Other than that I'm a big fan of the Canon compacts in general, they might not always have all the gee-whiz features of other brands (for instance, I don't think any of the SD series have HD video recording yet, only the bigger SX), but they're very reliable and very easy to use w/o being too dumbed down (though they do have an 'easy mode' IIRC). Some of those older models are sold at awesome prices when they're on clearance btw, even at B&M stores. My SD870 (bought for $250 originally w/a 20% discount code) was going for like $165 last May at Best Buy 'cuz they were bringing in the SD880 (which cost $280-ish brand new).

Unless it's like a two-month trip you're probably fine even with a single 4GB card, I think you can fit almost 800 shots in 4GB (at highest quality settings). I'm super lazy about transferring my photos back to my PC and I don't think I've ever filled my 4GB SD card, though my SD870 is 8MP rather than 10MP. Then again, SDHC cards are so cheap, I paid like $25 for a 16GB Transcend SDHC card in December (that I actually use for backups on my netbook rather than on my camera), probably no reason not to go with 8GB at 'least.

I've never managed to damage an SD card myself, and I've heard stories of people throwing them in the wash and the cards surviving. I've seen damaged CF slots/drives (those pins can be bent relatively easy, 'specially if you're an idiot and inset it the wrong way in), but not SD ones either. YMMV
 
I think one of the best canon cameras out there right now is the Canon SD890IS. Whether you are looking for a digital camera to take pictures of your vacations, week-end trips or the kids as they are growing up, this will be a best bet.
 
While I'm a huge fan of Canon, I think Olympus kinda has the market cornered on shock/water-proof cameras... I didn't even know of that Canon model though, so I can't comment on it. Unless you actually plan to drop it or dunk it in the water I think it's more of a luxury than anything. I've taken my SD870 out while skiing (while it was snowing heavily) with no ill effects, Canon's compacts are pretty rugged as is.
 
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