If you want a point and shoot, you might as well get an ultra compact. The only thing you will really miss from a larger point and shoot is the 10x optical range. However 3x optical is standard on most ultra compacts these days.
For the best photo in a slim camera, I would recommend the Panasonic DMC FX line. You can find a nice one starting at $200. These have nice lenses, an oversized ISO, and other features you would only expect on larger cameras. Plus they use a standard SD card.