I've narrowed it down to the Panasonic TZ8 and the Ricoh CX3. I was also looking into Fuji's EXR series, but most users complained that while you can get excellent photos out of it, you have to know what you're doing, and the Auto features, even the EXR setting, just boosts ISO way too readily. In general, if it's a setting that my hubby will have to change every time he turns on the camera, he won't do it.
I'm open to other suggestions, too. While I love my SLR, this will likely be our go-to camera just due to size.
I own a Fujifilm Finepix S1500. It takes superb shots in any one of it's three automatic modes, program, auto, and SR (Scene Recignition) Auto. I consider giving it a try, first, because it doesn't feel good in some's hands. I got mine for $150.99 USD at a wholesale club.