For those who want DSLR quality in a smaller package, you might consider the four thirds format, like the Panasonic G2. Lots of quality in a smaller package, with lens interchangeability. I'm using it on my Alaska vacation, and have been impressed with the quality of all the bells and whistles as well as overall image quality.
This pic is a stitched photo taken with the standard lens set at 14mm (28mm equivalent in a DSLR)
I got the 70-300 (140-600 equivalent), and here are a couple of examples. Both of these shots were handheld; the lens is very compact for the extreme telephoto capability.
These are some caribou that were a good 300 yards off....
And this griz was a lot closer....
I'm pretty happy with the quality that this camera offers. Check it out.