Given its small size, I have some doubts over the image quality, in particular the dynamic range. I have a PowerShot A620, and have found that, when shooting images with ranges of colour, often the image quality is flat and washed-out, in a way that it wasn't with my old PowerShot G2. If this is due to the physical constraints of the sensor size, then unless Canon have since had a breakthrough in sensor engineering, it is unlikely that the new top-of-the-range G series will deliver any better performance than a humble A. I'd have to see results before I'm convinced that the G7 is a worthy successor to earlier G cameras.
Having said that, it sounds like a very good camera for shooting at gigs and such, having both IS and ISO 1600 (and the whole thing costing less than half the price of a good IS zoom lens for a DSLR.
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