Image quality is just as important to me as the convenience of a p&s, so when my latest Canon broke due to a lens that no longer retracted, I decided to try Fuji due to the rave reviews I've read about its imaging technology.

Putting it through the paces, pictures came out sharp and natural in outdoor conditions, but I was somewhat disappointed with the noise and blurring that still occurred in lower light conditions despite the image stabilisation. It's a similar fault in my old SD800IS, which I guess is a limitation of ultra compact cameras generally. The difference in image quality between the Fuji and Canon was so small, that I think if you've decided to get a p&s then the Fuji is just as acceptable as any Canon in the same range. This is where the other features come into importance.

Pros:
Non retracting lens. This will not break or get stuck like the retracting lens that seems to afflict the Canon SD series so often. Coupled with Fuji's better customer service and 3yr standard warranty, I felt more comfortable about shelling out $$ for a Fuji than for a Canon.
Sexy design. I chose the copper tone, and it's unbelievable how beautiful it is the Z100fd looks more like a Mont Blanc cigarette box than a camera. It truly fits in a pocket and is worthy of a home in a Louis Vuitton bag. Everything from the diagonally sliding lens to the slick metal and curved finishes will turn heads.
Click wheel is easy to use
Auction mode. This allows the arrangement of 3 or 4 separate pics into one photo
Takes SD cards
Better photo viewing and management software than Canon SD

Cons:
Frustrating manual. I am still trying to figure out how to change the resolution and how to download pics from the different folders in the camera
Grainy, noisy pics in lower light. I would be happy with a 7MP or even 6MP camera if it means an improved imaging sensor.
Slippery feel
Lens in top corner meant the finger sometimes gets in the way
Battery charger bulkier than Canon SD. Battery life seemed a little short

Overall unbeatable looks, does everything you hope in a p&s, acceptable but obviously not SLR quality.