I'm not exactly an expert, but my friend does have an older model of the camera you are referring to. The main feature that pushed him towards this one was its compact size. He's had it for 2-3 years and I think he is very satisfied, except now that I have a 4 MP Kodak, he sees the difference in picture quality. My Kodak is a little bigger, but it's still pretty small.
2MP is ok for sharing on the web, and 4x6 prints. However, if you plan on getting any enlargements, or want better detail, you might want to think about getting something higher than 2MP, and possibly a higher optical zoom.
If, however, you just want a quality, compact camera for basic digital photos, the Elph should be fine.