I fail to see how a vari-angle display helps get shots that dSLR users are able to get. You still need to use a viewfinder with a dSLR, which although it helps you better frame shots, and see what you're shooting, is not as easy to use as a plain ol' screen. Maybe it's just me, who knows. I've used a Canon S3-IS, and the screen is nice, but it seems like something that could be easily broken accidentally. After using it for several nights, it's not something that I myself find essential.
I've been using my G7 for 2 days now, and I think it's a great camera. I haven't made any prints from it yet, but I'll be taking it on a trip for the next week or so.
I had Canon S50 before, and I'd say the G7 is a huge step up. IS lens is nice, the screen is BIG (especially compared to my S50), and I'm finding something new I can do with it every time I pick it up. The pictures I've taken so far look great.
The AV, TV and M modes are easy to use, allowing you to take full photographic control. The rotary dial on the back is very useful for this, allowing for you to scan through the shutter/aperture combinations.
Face recognition is useful, and kinda freaky, but it's cool. It also has a ton of scene modes if you don't want to bother using one of the advanced modes.
The hot shoe is really great, and it makes a huge difference when you use an external flash. I used an external flash with it, no problem. It really gives you a lot of flexibility with the camera.
I could go on and on, but I've gotta get going here. Overall, the photos are great, and it has tons of features. If I had to gripe about it, I'd say the camera is a bit odd to hold, and I wish it had RAW support, (but I can live without it), and the higher ISOs make noise a big problem (which is what you'd expect with a 10mp sensor on a tiny chip). I'd greatly recommend it if you're looking for a camera that's just a step below a dSLR that's easy to handle yet more powerful than your average P&S.