The best Canon is the G12 the S95 cannot produce images of a commercial quality (it's on the banned list of certain stock libraries), but the G12 is capable of images that at fit to screen size are difficult to differentiate from a Medium format system, let alone 35mm. Of course given optimal conditions, it won't allow background blur or proper macro shots, but it will allow you to use the EX flash system which many others won't. (and it has an optical viewfinder too).
That's interesting. So, the G12 delivers image quality that's hard to differentiate from a MF system, whereas the S95 does not. Can you explain how that's the case, given that they use the same sensor? Do the articulating screen and optical viewfinder have a big impact on IQ? Maybe it's the lens - after all, the G12 zooms to 140mm FF-equivalent, while the S95 only goes to 105mm. Maybe it's the wider aperture of the G12? Oh, wait, the S95 is f/2 at the wide end, vs. f/2.8 for the G12. I could continue to speculate, but hopefully Flake will provide the true
reason, then go on to tell us how the 7D has better IQ than the T3i.