I'd say a good ol' Olympus XA with a few rolls of velvia.
But in today's digital world, my vote for "best point-and-shoot" would definitely have to go to any of the compact-shaped m4/3 cameras. Even the E-PL1 will vastly outperform any LX3 or S90 or G11 when it comes to pure image quality (my primary criteria), and the GF1 manages to do that AND be almost as fast as entry-level DSLRs.
If you need to keep it under a few hundred dollars or need something REALLY small, get any cheap canon point and shoot that's CHDK compatible. CHDK is a firmware "hack" that enables full manual control and allows all sorts of insane capabilities that you really couldn't achieve with a DSLR (like motion-detection photography and ultra-high shutter speeds and flash sync speeds), making it (to me) the only real reason to buy a small-sensor camera.