As long as you can accept the idea that all cameras involve some level of compromise, there are lots of decent pocketable cameras out there that you could be happy with.
The problem comes when someone wants DSLR quality and versatility, but wants an ultra-compact camera that will slide in a pocket.
With a DSLR, you make a compromise...as you've discovered. It ain't that portable. You have to accept heavy, big, and unweildy in order to get interchangeable lenses, big sensor, good image quality, fast bursts, etc.
With a compact P&S, you get wonderful size and portability - and at least some level of neat features, nice LCDs, and decent or usable image quality...but you have to accept small sensor, slower focus, reduced or eliminated manual controls, small or no optical viewfinder, and reduced image quality for large prints or heavy cropping.
That said...I thoroughly enjoy my ultra-compact camera - A Sony T100...and I am happy with the results I get from it. I can make very nice 8x10 prints and great posting results. Can I crop 60% and print an 8x10 at the same quality as my DSLR? Of course not! And I certainly can't shoot in low light situations, fire off a burst of an action scene, shoot birds in flight with instant focus and shutter, or shoot noise-free and high detail high ISO. It is what it is - a very small, sleek, cool-looking compact camera that does all I expect from it, allowing me to have a camera on me when I don't want to carry the DSLR and still get nice prints.
For that purpose, lots of compact cameras should do well - check out the Sony W- or T-series, Canon SD series, Panasonic TZ series, Fuji F-series. All should make lovely 8x10s if you learn to use them optimally, and will all be slim enough to slide easily into a pocket.
Remember, lots of people use compact cameras with no basic photography skills, and therefore alot of compact camera shots you'll see can come out pretty lousy. But even a small-sensor compact in the hands of someone who at least knows the basics of photography can deliver usable pics.
Here are some Disney shots I snapped with my T100 (which isn't even the best compact camera out there - but I liked how slim it was and the design, and the battery lasts forever):
And I'm not trying to make this a Sony commercial. I think any of the compact series I listed above could probably do as well...and I think any of the above are decent enough IQ to print a nice 8x10 of, or display at most monitor sizes. If you zoomed to 100% viewable, the details won't hold up as much as a DSLR, the photos won't be as editable as a RAW shot from a DSLR, and certainly some of the situations took alot of effort and a little post-process cleanup to look good, whereas a DSLR wouldn't have broken a sweat (like some of the interior shots, or the Spaceship Earth shot which required ISO800).
It's more about learning the best way to shoot with a compact, and understanding it's different than a DSLR. A little patience, some time to set up a shot, learning to manipulate shutter and aperture combos with spot meter since you often lack manual controls, etc. If there's a brand you happen to be partial to, go with that one. If one is at a great price, go with that one. If you like the way one handles, or looks, go with that one!
My compact comes with me every trip - some days I bring the DSLR, and some days I leave it in the room and bring the compact. Sometimes, I even have both with me! I don't think I could live without two cameras - one compact, and one full size.
