While you'd think that the camera market is becoming saturated, manufacturers seem to be able to find gaps in their lineup where they might be able to attract another marginal percentage of the overall market.
Recently a handful of APS-C and smaller sensor cameras have entered the market attempting to segment users that want something between a point-and-shoot and a dSLR. Such companies such as Sony with their NEX-5 and Olympus with their Micro Four Thirds E-P1 have given users alternatives to using Canon Powershot to Apple iPhones.
The benefits are clear. Interchangeable lenses. Larger sensors. Better low-light abilities. Smallish bodies.
I have two friends that own the E-P1 and Panasonic's Lumix GF1. I've seen them in person, held them in my hands and looked at the file output. They are exactly as they proclaimed.
But they don't go everywhere with my friends.
They're too expensive to just toss around. Unlike a Canon Powershot, these cameras run up to $700-800 depending on how you outfit them. Secondly, they're not as small as you'd think. They'd never fit a normal sized pocket without being obtrusively obvious.
The end result is that my friends don't take them wherever they go.
Much like the iPad vs. iPhone argument, these devices are great at what they do but they are sometimes redundant. For me, it's either the Nikon D3 or the Apple iPhone (that goes everywhere with me). I don't have space for anything in between...
Or do I? :)