To be realistic I’ll state the fact that smart phones will continue to demolish the point and shoot market.
The big guys should consider a smart phone augmentation strategy and build a business on the back of Apple and Google. Create products that play nicely with the devices that people already have.
The Canon camera case attaches to an iPhone similarly to a typical phone case. This suggested product adds the capability to transform your phone into a high quality camera. Amazing.
Hey look! A mini version that can attach to an iPod Nano