Pros: Size IS everything. Forget clunkers. This goes with you everywhere.
Cons: The cons don't count for much in comparison to its charms.
The obvious charm is the minuscule size and sheer beauty of this as an object. You want to be seen with it everywhere. Everybody loves it. Oh, yes! Then there's what you bought it for in the first place, taking pics. Its even very good at this. Before I bought I'd looked at all the reviews and film was still the thing if you wanted quality. Having said that I am not disappointed though. Unless you really go in for large blow ups, the resolution is fine. Especially if like me you then use the Browser software to compress files to send as email attachments. Putting your images up on the web for family and friends to see is far superior to shoeboxes full of pics which no one ever saw. For this purpose this machine is excellent. No, I mean EXCELLENT. Had it three months and still finding new things it can do. Colour temperature adjustments, B/W, exposure bracketing, image stitching, zooming in on pictures you just took, and on and on.
The software package couldn't be simpler to install or use and the USB connection always works a treat. It comes with a Browser, Adobe editing software and a program to let you stitch several shots into a huge panorama. The Canon Zoom Browser helps you file visually as well as by conventional menu. Very intuitive. Editing pics is a doddle. Even doing things like masking complex areas and changing the shading/colour etc of those areas is simplicity itself. Redeye elimination can be automated or manual. Haven't really used the panorama software but have been told it's good. The camera itself also allows you to stitch pics together which is pretty good.
You can also buy an all singing, all dancing weatherproof case to protect from the elements - even sand. Cool.
The downside: There are some, I'm not blind. If you've got fists like hams, this may be too small for comfort. That said, mine are pretty darn big manly things and I manage just fine. Its v easy to operate single handed. The accessory package seems weak. it only comes with a wrist strap and no case or neck strap like that which came with my mum's APS version of this camera. You can buy them as extras, however. The main drawback is the battery life. This is easily remedied by buying an extra one and taking it along. One batt easily lasts for 50 high res images plus quite a bit of editing and a number of flashes. That brings me to the other problem - the standard 8Meg flash card (13 high res pics). I found a 32Meg is much better (50ish high res shots) In use, the camera is great if a little sluggish powering up and it can be quite hard to time action shots.
So with the extras in place it is fair to say I LOVE this camera.
Its portability lends it to be used for all sorts of things other than just snaps - comparison shopping, home furnishing ideas, a powerful notetaking tool.