Here's an apparent new generation of low light digital cameras: Fujifilm FinePix F200EXR and the Sony DSC-WX1 ($320 and $350, respectively, before discounting).
Sony WX1 looks like it's better than the Fuji but a new Fuji, the F70EXR, comes out next month.
In most cases, the Sony did even better than the Fuji. Some of its shots - like those taken with only a single candle as illumination - were nothing short of miraculous.
The Sony performs two other stunts that will make your jaw drop. From its much larger, zoomier cousin, the HX1, the WX1 inherits Sweep Panorama mode. As you whip the camera in an arc around your body, it quietly snaps 10 consecutive photos, figures out how to connect them, and spits out a finished 270-degree panorama. Talk about wide-angle!
There are some limits to this magic: the resulting photo is "only" seven megapixels for the whole image (the camera ordinarily shoots 10-megapixel images); the exposure is fixed at the far left end of the sweep; and people or things that move during your sweep may appear twice, squished or chopped off. But still, how great to show the majesty of the Grand Canyon or some other vista with a single press of the shutter button.
The Sony's other great trick is capturing 10 images in a one-second burst, a capture speed that puts most other pocket cams to shame. Unfortunately, the camera locks up for 18 seconds afterward, as it processes all those shots.
Cameras That End the Low-Light Nightmare