I'd agree with that as well, the best two point and shoot cameras I have are the Fuji FinePix 2400 and the Canon Powershot A75. They are 2.4 and
3.2MP respectively and they're perfectly good. I've enlarged the Canon images to A3 and no one has noticed the pixellation other than a couple of pros, and they were still impressed that I'd got away with it.Burgerbloke's right, good lens makes far more difference than the pixel count. For comparison I have a Kodak 3.2Mp camera that I won in the "kodak got the web price wrong" event a couple of years ago.
It's horribly, utterly, s**te. Despite having more MP than the Fuji, it produces vastly inferior, dull, grainy, muddy looking pictures.
Hit list for a good point and shoot digicam:
Good lens. Must use CF cards. Ability to save RAW images or at least TIFF or low compression JPEG. About 3.2 MP or more. Lithium battery if possible. Daylight viewable screen, because no one can frame a shot well with those crappy optical viewfinders.
Avoid anything using memory stick for it is s**te and expensive.