For me, the amount I use a camera is directly related to how easy it is to carry around. The Digital Elph line of Canons are all tiny metal boxes that are good cameras.
If you want more specific advice, ignore "digital zoom"; it doesn't mean anything. "Optical Zoom" is real, so more is better. "Image Stabilization" is the nutz if you're not using a tripod; it lets you go flashless when you couldn't otherwise, so makes a big difference.
edit: I have
this one and like it a lot. < $300.
