When is a compact camera superior to a dSLR? Everytime you need a high DOF in low light, like in this situation. This picture was taken with the GRD at ISO 1600 and EV -1 so effectively at ISO 3200 and using Snap focus. The D70 we had along could not focus, the f3.5 lens was too slow and the DOF too shallow as to be of any use.
This might not be an amazing picture but it shows where a small sensor camera can be much better than a big sensor camera. This is why I hope someone will release a compact camera with a 2/3" sensor and a very fast lens. I don't need or want a full-frame or APS sensor because the DOF is too limited there. It can be nice for portraits but not when you loose all advantage of a fast lens and high ISO.
While everyone is asking for compact cameras with a big sensor, I would like to see compact cameras with improved small sensors. If I could have a 2/3 sensor which can deliver the same image quality as the GRD I in this picture at ISO 6400 and a f1.4 or f1.8 lens it would be the perfect camera for me. Looking back through my pictures I noticed that the image quality of my Ricoh cameras was never really limiting or not good enough to get the shot and have a memorable picture. The only thing I missed me was a higher ISO and faster lens.