I am glad this thread came up, because for me, it will always be about reconciling "best" (as in picture quality) with "compact" (size matters, after all). After years using a Panasonic Lumix (whose Leica lens produces wonderful pictures), I just bought my first Canon Elph SD940. The nominal wide-angle is surpassed only by the compactness of this sturdily-built camera, and thus far, I love it! You might consider the Canon SD1400, as well: it's a later model and feels lighter & more ergonomic in the hand. Prices should range between $200-240.
Good luck in your search!