Regular visitors know of my obsession with finding the ultimate point and shoot camera and know that I bought an S90 which I've been very impressed with. It's two downfalls have been the ergonomics and the lack of improvements in video abilities. The former you can work around by adding a grip and just plain getting used to it. The latter you're stuck with. Canon appears to be listening and has released an update to the S90 aptly named S95. I think the update may be fueled as much by Panasonic adding more zoom to the LX series as customer demands.
According to dpreview they've added support for SDXC cards for larger than 32 GB (ho hum), some improvements in the image stabilization (yawn) and multi-aspect shooting (tapping my fingers here Canon). The ONE real new feature and probably the only real reason for the update is the improved sensor that does 720 HD video (at 24 fps) with stereo sound! Finally Canon is getting into the game. I don't care that much because I also own a Canon HF-200. The improvement is welcome though and shows that Canon is making the changes to be competitive in the Point and Shoot video market as well.
There are still limitations to the very design of most point and shoot cameras. They will say unlimited video recording until the card is full or the file size reaches 4 GB. In HD the S95 can record about 30 minutes of video non-stop. Sounds like a Fat32 filesystem limit to me. I think it's time camera manufacturers endorse a new filesystem.
They've made other small changes to improve the complaints about ergonomics. The small wheel on the back supposedly is less sensitive, the coating is less slippery than the old finish (listed as wet bar of soap in the catalog I believe), and the power button and ring function button have been swapped. Also it looks as if the shutter release is about the same size but the area surrounding the button is dished in to help you find it by feel. The button itself looks to have more of a bulge to it for the same reason. If you go back and read my S90 review you will see that they have directly addressed ALL of my major complaints except for the grip issue which can be fixed by buying the aftermarket grip. Since I've not used the S95 I cannot comment on whether they have been successful but it looks positive.
Read DPreviews press release.