We made up our minds...

...and bought the Panasonic TZ5. It is actually a lot smaller than I thought it was going to be. Despite having a huge zoom lens and monstrous LCD screen it is still smaller than our old camera. I was not expecting that.
So that is perfect for us. Neither of us is an avid photographer by any means. Irene just wants it to be fast and give good pictures with out having to mess with the controls. I like getting a good picture and I am willing to play with the features to get it. Maybe its because I am more gadget oriented (read geeky).
This camera will hopefully join us on many adventures. I plan to take it to every event because you never know when a camera would be perfect to have. We ended up getting the camera in Blue because everybody else seems to have silver and black. We are non-conformists.
Apparently the biggest problem with point and shoots these days is the sensors are not good enough. You can get good ones but spending almost a grand on some new technology that isn't proven yet doesn't make sense to me. As far as I know the only point and shoot camera with the Foveon sensor is the Sigma DP1 which is less than stellar according to dpreview.com. Apparently the best point and shoot you can get is the Lieca M8 but you will be paying almost 5 grand for that privilege. And that doesn't even get you a lens.
So needless to say, I think I will be happy with my Panasonic.

A special thanks to those who offered suggestions and recommendations.