Amazon's price on the SD850is is starting to climb instead of drop. it is now $260. I'd guess this means stock is drying up, so it's probably time to buy this camera if you are interested. The next bump up (The SD950is) is going for $350. Given that shipping is free, these prices are actually about as low as they get online from reputable sellers. It's been a little while since Canon has announced a new SD camera, so if you wait another 3 months I expect some new choices will be out.
In the mean time, the Sony W80 remains a good alternative at $190 (again, free shipping).
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