Everyone needs a P&S camera. I just got a refurbished Canon SD1000 a week ago for $90 shipped (Canon estore) but before that I didn't have a P&S camera for over a year. There are many situations where you want to take pictures but don't want to bring a DSLR.
I also recommend Canon P&S cameras to all my friends. They process the pictures better than most other cameras. I remember taking the same picture with a HP camera and a Canon camera. The color and exposure on the Canon was more accurate and made the picture look better.
Also, with many Canon P&S cameras, you can install a hacked firmware called CHDK that enables more features such as RAW, auto bracketing for HDR photos, timelapse, unlocked ISO, etc.
http://chdk.wikia.com/wiki/CHDK_firm...arameters_menu