I've now had 4 digicams.
I swear the best one was the first one I ever bought, a Canon A40 I think it was, 2.1 megapixel; 3 x optical zoom and it took 4 x AA batteries.
Sold that to Chris Postill cheapo, no wonder he was happy with it.
My current Nikon S500, a Canon Ixus and a Canon A80, all around 7mp, honestly don't take such good pix.
There is more to cameras than megapixels. I honestly think the lens quality matters more. And that's why I commented on Mucks' Fuji Camera. It's good.
Just my experience
And yes, digital zoom is a waste of time really, it's the same as zooming in on a pic in Photoshop, it just gets grainer. Optical zoom is real lens movement.
I also think those fixed lens cameras that look like DSLR's are something of a con. You may as well just get a small compact, same result
There's a guy over at the Hexus Forum sellling a Nikon D40X with standard lens and carry bag for £320.00 atm, the last time I looked. That's the same camera I have but I have two lenses and some other accessories.
He hasn't sold it yet, I figure you could get it for £280.00 or so if you haggled.
But there again, it may be physically too big for your needs, travelling abroad and stuff.
Cracking camera though, I'm still learning how to use mine and I've had it since June, but that's laziness on my part I think.