Everyone said it would happen eventually: cameras designed to take better images not create bigger files. The announcement of the 10MP Canon G11 with a lower resolution sensor that it’s predecessor (the Canon G10) means that it might have finally happened. Nikon probably started the ball rolling when it created the d700 with it’s incredibly low noise 12MP sensor. Now it is just up to consumers to catch on… more info at crunch gear.
Along with the G11 Canon have also announced a few touch screen powershots… more info hear, hear, hear and hear.