If you understand the limitations of a point and shoot you can maximize it's capabilities. What makes a point and shoot an interesting camera?

1) Size
2) Price
3) Depth of Field

From a technical perspective the price doesn't matter. With regard to size; if you don't want to carry a camera you won't be able to get the shot. But, the last point is what sets P&S camera apart as a genre of their own. Digital P&S cameras have very small sensors. This means that each pixel doesn't gather as much light as a big DSLR. So, you have a lot more noisy images (lower quality).

But, what you gain is an extremely deep depth of field. It is hard to get something out of focus with a point and shoot camera (in good light). This means you won't get that creamy out of focus background on a portrait, but you will get everything from very close to the camera into the distance in sharp focus.

Combine this with the price factor and you can appreciate why a Magnum photographer such as Alex Majoli uses them for his war coverage.

An example of great use of a point and shoot for depth of field (this time for climbing photography) can be seen here: from Daniel Chen

As for myself - I don't carry one so I bummed Amie's today as we stood around outside. Thus the squirel photo.