I almost bought a Canon G9 a few days back. Now I see that the G10 will be available next month. If any of you are interested in a very compact, high quality camera, you might like to look at this: http://www.steves-digicams.com/pr/canon_09172008_g10_pr.html
The G9 looked ideal as a near substitute for a DSLR when I didn't want to carry anything bulky with me, so I read the reviews and printed out test photos. It's good up to 200 ISO, but above that, the noise quickly becomes objectionable. I'm now waiting for reviews of the G10 to appear. If the sensor's improved enough, I'll be buying one.
Have had the G9 for nearly 12 months, for the reasons you expouse. Love it. Went to get a G10 from my favourite dealer. He said unless I want the wider lens very little point !, may still get it !. Used for " street " and available light up to iso 400 no problem with a touch of neat image or noiseninja, will put some stuff up again on the site soon. Have a look at http://www.luminous-landscape.com/reviews/kidding.shtml.
Sorry for not having come back here sooner. I don't think I've had any email notification about a reply, actually. I now have a G10, and it's marvelous! I reall y don't know if the sensor is any better with noise at high ISO, compared to the G9, but you can get away with 400 ISO -- or even 800 -- with some cleaning up, which I do with the supplied postprocessing software and in Photoshop. See all my new shots on aminus3 for a look at the G10's performance. See a lot of them larger, if you want to, on my website, here: http://www.andrewgouldphotography.com/gallery/6402036_dQ4Qw#406194773_yZESe
I can now imagine that G9 owners would not need to update to the G10, unless they really needed the 28mm wide angle. 35mm is wide enough for most things, and you do have the long end up to 200mm, whereas in the case of the G10, it's only 140mm.