I have to take the opposite tact ougrad86 than the previous poster, although all their points are correct. You sound much like my gf.
She wants a camera that takes good pictures, not amazing, and is easy to carry (When i say not amazing, there are still really good, particularly compared to film cameras on the whole). She tried a larger one for awhile and ended up disliking it. I personally really dont like the ultra zooms, you get all the added weight and bulkiness of a DSLR and not all the benefits.
Compact cameras are great. 4x zoom is also plenty. I have a DSLR and a compact camera. At disney wanting more than 4x zoom is really rare. Even maxing out to 4x zoom is rare there unless you're spending time taking extremely artistic shots and then you want a DSLR. I have thousands of pictures with both, and the compact ones are still great. They aren't as good obviously, but they are still great. I really like the olympus waterproof camera, but my last two point and shoots were canon. All these were taken with a Canon point and shoot but the selectoin of pictures is random, I just used photobucket to show someone some pictures, they arent a selection of the best, just showing specific things,anyways, you can see SOME examples at least.
http://s273.photobucket.com/albums/jj207/Solz20/Disney/?start=0
I like the canon SD890IS and the olympus stylus 1050 SW which i really like because its waterproof to 10 feet which is fun for things like waterparks or the ocean, swimming pools etc.
This is going to be a personal preference thing really. Do you want something you can carry in your pocket and barely notice its there, or something around your neck or in a bag on your shoulder. I carry a DSLR to lots of odd places, not just on vacation but when hanging out with friends, so im not averse to it. But I know a lot are. My gf didnt even want something big in her purse.
Oh, the lenses, they dont scratch, they have automatic lens covers when they close, all point and shoots do pretty much.
Laurie, I had an older model of that camera and learned to use it on a Disney trip. I later upgraded to a DSLR. I really liked that camera but I ended up regretting the purchase because I really wanted what a DSLR could offer and when I bought the version of the camera you had it was not cheap at all. I really liked all the extra features on the camera though, I just ended up wanting more. It was still good for 2 years for me though, so I did get my money out of it. I don't mind carrying cameras around. I often now carry my DSLR in my hand for hours on end, I dont even notice it. Everyone is different though in that regard. I think the way to tell is think about going out and bringing your camera. If you think oh i dont want to carry it, maybe it's too big because if you dont bring it you will have no pictures obviously. If you think oh its worth it for the flexibility in picture taking and the fun I have learning photography and etc, its probably worth it.