I am heavily considering getting a S95 and sell my 450D/(XSi?) after i sold my sigma 17-70 f2.8-4.0 today and all the accesories and lenses i still have for it so i can get the s95 and still have money left.
It would be nice to have a camera that you can have in the pocket at all times instead of a bulky DSLR.
Lenses for the DSLR also cost alot of money and for me aslong as the object is in focus and doesn't have loads of noise i'm satisfied. Also what i love about the s95 besides the size and price is that it has miniature effect and fisheye effect, sure that may seem like a marketing thing, but hey, i'm not one of those guys that have the patience nor the time to edit my photos like i want, so why not have it built in and have it done in a snap.. makes life so much easier and you can enjoy your time with something else instead, like shooting more pictures!
As i mentioned about selling my stuff, i'd probably keep the flash and use it with the s95 (doesn't require hot shoe so that's no problem) lighting is much in a photo so i'm thinking that may be enough for me when i do need to get really nice images. Tell me if i'm out of my mind or something but that's what i'm thinking.
I also take alot of pictures of my daughter while she's running around and that's the only concern i seem to have, is it fast enough for that? The focus that is, and does it have contious focus and or burst? Probably not a deal killer for me if it hasn't but would be nice to have, depends on how good/bad it is though.
And Simon_Gardner must be sarcastic or simply doens't understand what needs vs image quality is for many.