Best small camera?

I've been on vaction this week, happily snapping photos with my old Canon PowerShot S110. This is a great camera, but I bought it when it first came out a few years ago and at 2.1 megapixels, the camera is starting to show it's age. So I think that I want to find something smaller, higher resolution, and with a really good video capability. Is there anything like that availalbe for under $400? Are the newer PowerShot cameras still as good as the S110?