When asked what compact camera to buy, I always recommend the Fuji FinePix F30 or F31fd because it's the only point & shoot with respectable low-light performance. I own a F30, and wouldn't replace it with any other model from any other brand. Recently, Fuji bowed to marketing pressure and released a 12-megapixel successor called the FinePix F50fd. DPReview has an in-depth review of the camera, with many images that compare it to the F30. They conclude that it is a really great camera, but doesn't really improve output when compared to what the F30 produces.
So does the release of the F50fd change my recommendation? Nope. I certainly wouldn't upgrade to the F50fd from a F30. There is simply no reason to scale up resolution if the output isn't going to be as good; more pixels doesn't always mean a better image. However, I would certainly buy a F50fd if I were in the market for a new compact camera. It's probably the best compromise between size, quality, and price.
*UPDATE, July 4, 2008* I think I'd probably recommend the Fujifilm FinePix J10 these days because it is relatively inexpensive ($115) while providing similar quality to Fuji's existing line of compacts. It's also really small and takes SD cards so you can scrap your old xD cards (hooray!). The J10 doesn't have face detection, but I could live with that, since no camera I've owned has ever had that feature, and I do just fine. :)