I bought a Canon Ixus 105 last year after much deliberation like you. It's small enough to go in a shirt pocket easily, takes great pics (see this link for examples
Cray Reservoir, Powys ) not only out and about but for taking close ups of the flies I've tied. It's a great camera if you are a point and shoot person. It gives some control but if you want more manual control then look elsewhere. I also accidentally dropped it into my local smallwatera few weeks ago and after fishing it out and giving it a few days in the airing cupboard it's working sweet as a nut. I think this model has been superseded by the 115 which offers HD video but I might be wrong. The Canon Ixus 130 costs a bit more, offers HD video and is smaller but I didn't want any smaller as things can get a bit too small and fiddly.
Anyway worth a look at the 105. I know I'm not the only one on here with one. Hope this helps. If you need to know more about this camera send me a pm.