Number 2 is the Canon Powershot G10.

The Canon Powershot G7 was brought forth in 2006 as the long-awaited replacement for the G6. Yet, in several key ways, the G7 broke ranks with the models which preceded it. Gone was RAW, the articulated LCD, and the fast, f/2.0-3.0 (35-140mm equivalent) lens from the G3, G5, and G6. Rather than a follow-up to the G6, the G7 was the heir to the Powershot S80.

Canon G fans protested loudly, but with the exception of reintroducing RAW with the G9, Canon has stuck to its path. The days of the chunkier G are gone, and Canon has continued to refine the model it brought forth with the G7. With the G10, it seems as though they have come very close to perfecting the formula.

Here's a quick look at some of what the G10 offers:

• 28-140mm (equivalent) f/2.8-4.5 lens with excellent sharpness across the frame
• Relatively low distortion
  
• Best in class resolution
• Excellent noise performance
  
• Best lens speed amongst current compact telephoto offerings
• Amongst the best available controls in a compact with easy to use menus and dials for ISO and exposure compensation
• Responsive performance
• RAW
  
• Best in class image stabilization (based on my subjective impression)
• Best in class LCD quality
• Useful optical viewfinder
• Hot shoe
• Great build quality and ergonomics
• Good battery life
• Large feature set
  

There is little to fault with the G10.  Two things to consider are that it is less pocketable than some of the alternatives and that it has average dynamic range for class.

Overall, I believe that the Canon G10 is perhaps the single best choice for the majority of photographers seeking an advanced compact camera for general use.

The Canon G10 currently sells for $440 at Amazon

Number 1 tomorrow. Preview: There is a tie for #1.