I'll counter the "don't combine functions" opinion with my own that having to carry only one camera on vacation is a plus.
The Canon S3 has excellent video with full zoom and stereo sound (up to 640x480 30fps) ... AND you can take full-size stills while taking video. The IS makes the video very stable. It's not HD, of course, but IMO it looks as good as any other video-recording I've seen on hand-helds.
The versatility of being able switch from macro, to wide-angle, to full zoom, to video all without taking my hands off the camera is one of the main reasons I love my S3.
If my *only* choices were the G9 or the SD890, I'd go with the G9 ... everything I've read leads me to believe it's the more capable camera.