The newest PowerShot in Canon's super-compact line is the SD870is. Unlike most of the SD line, it doesn't have a optical viewfinder. It's sized about the same as the SD850is, and has a 3.8x zoom lens. It's rated at 270 shots (CIPA), which is not so great given that there's no optical viewfinder, so you can't use the camera without the LCD on. The price is $309 from amazon.
Picture quality looks pretty good - if anything the corner blurriness is less on this camera than previous Powershots, though I have yet to do a detailed comparison.
DP Review - positive review, some spec oriented tests and real-world pictures.
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