I was in exactly the same situation - I wanted a relatively simple, compact P&S that was capable of producing good quality images that I could carry with me when I didn't want to lug round my Canon 30D etc.
Being a "Canon" person I obviously checked out the G9 but wasn't impressed because it could hardly be called "compact" and in spite of being a Canon, didn't, in my opinion, produce images that merited the relatively expensive outlay for a so-called "compact camera".
Eventually I settled for the Panasonic TZ3 which, with its superb 28-280mm Leica lens, really "fitted the bill" as far as I was concerned and satisfied all my requirements. Needless to say, I thoroughly recommend this camera - it produces images that, up to A4 size prints, favourably compare with those from my 30D with "L" lenses!!
The only caviat regarding the Panasonic was the fact that it took a bit of time to get used to using the 3" LCD screen as a viewfinder!!