I've got a Sony Cybershot DSC-T1 and a Canon Powershot A60.

The Sony is a 5 megapixel and as far as picture quality goes, it's okay. A lot of the pictures have a lot of noise on them but the 640x480's seem alright. I think it's closer to a point and shoot rather than the ones with more options to play around with. Definately not worth the $800+ though. The only thing I like is that the videos can be 640x480.

I LOOOOOOOOOOOVE the Canon. It's only 2mp but the quality is awesome! It's very sturdy too. I've dropped it countless times (this includes dropping it in snow) but it's still working wonderfully. But since you're looking for a higher megapixel one, I'd probably go with the A80. The Canons seem really reliable.