I have a G7, and the only thing that has bothered me about it is that it doesn't shoot raw. Of course, I don't make a living (or much money at all) off of my photography, and if I did, I certainly wouldn't be using this camera.
The only other issue would have to be noise above ISO 400, but I almost never have to shoot that high. In fact, 90% of my shooting happens at either ISO 80 or 100, 200 if I really need it.
As far as features and functions, the camera is pretty solid. Nice IS lens (especially for its size), easily accessible features, in a pretty compact package.
I haven't had a chance to go on a serious photography outing, but I do have some shots I've taken while walking around campus. If the pictures look fuzzy or have artifacts, It's probably because I had to reduce the quality to get them to upload. If you want a higher resolution version, let me know and I can email it to you.
Also, let me know if there are any specific questions you have regarding the camera. I'd be glad to answer any questions you have, to help make sure you choose the camera that's right for you.