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Diminutive digital cameras continue to improve. The compacts and subcompacts in the Ratings have longer battery life, larger LCDs, and higher resolution than last year's models. And they cost 5 to 10 percent less.
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A higher proportion are subcompacts, cameras small enough to carry in a pocket, and the values there are especially notable. A prime example: the Pentax Optio M20, a 7-megapixel subcompact with a battery life greater than 450 shots, plus an image stabilizer. It costs just $200, a new low for a high-performing pocket camera.
Not that there isn't a downside to downsizing your next camera. Compacts and subcompacts ...