We’re not quite sure about its “background defocusing” function (opening up the aperture would do the same thing) — the all-new Olympus SP-800UZ has proved to be a strong contender otherwise. It flaunts 30x optical zoom, a 14 megapixel CCD sensor, a 3-inch wide-screen LCD, 720p HD video recording, CCD-shift image stabilization, SD/SDHC compatibility, Face Detection AF, and HDMI output, all crammed up in a compact, stylish body with a $350 price tag.

Olympus’s PEN E-P2 takes some of those criticisms of the original Olympus E-P1 head on with the addition of an integrated Electronic Viewfinder , a Manual Video Settings option, External Audio Port, and subject tracking Auto Focus. The all-new camera carries the same 12.3MP sensor as the outgoing E-P1, Micro Four Thirds interchangeable lens system, and almost the same compact body. The camera is priced at $1,100.