The Sony  Nex series has been built to capture the essence of a DSLR into a compact body. The latest in the series: The  Sony NEX-C3 Camera ($600-$650) has a solid metal top case, a streamlined grip, a 16.2 megapixel Exmor APS HD CMOS sensor, 720p video recording, a tilting, three-inch LCD, 3D Sweep Panorama and Auto HDR modes, and a weight of just eight ounces.
I am not sure about the performance of these little beauties though, I would prefer to stick with the siblings having big guns unless I have some extra bucks that I would not mind spending just for fun.