Which do you recommend and why?
I think Canon makes the best P&S cameras and I'm a Nikon DSLR user.
Unless you need the extra reach with SX230HS (14X), I recommend 300HS (5X) as others have. It has been replaced recently by Canon with 310HS but I like 300HS better as it has wider angle lens (24mm vs. 28mm). On cameras with longer zoom lens, the lenses are designed with more compromises. Also, unless you use the tripod, longer zooms are not vey useful at the long end (beyond about 5-6x), even with image stabilization. unless you are a photo enthusiast, when was last time you carried a tripod on vacation?
In big family gatherings and panorama scenes from vacations, the usefulness of wider angle lens is readily apparent as 300HS has wider angle lens than many of its contemporaries. Other than that, 300HS and 310HS are essentially same.
You can buy 300HS for under $200 now in many places. 310HS has been replaced by 320HS, which brings back 24mm wide angle lens but it has higher megapixel sensor. In P&S cameras with small sensors, there are no real advantages to having higher megapixels. Higher MP rating is essentially marketing gimmick in P&S camera market.
300HS is fast, responsive, does well in low light situations, very compact and does 1080 HD video. Battery life is very good and generic replacement batteries are inexpensive and easy to obtain. Canon uses same battery types across many of their models present and past so if you get another Canon P&S in the future, you might even be able to share batteries.
