Canon SD780 IS
I'll throw another contender into the ring - the Canon SD780 IS. It's about the smallest/thinnest point-and-shoot Canon has made, has a really nice sleek aluminum body, and shoots 720p video.
The sensor is small, so low-light images are a bit noisy, but for its size it's really quite good. Typical Canon color saturation, for better or worse (preference). The 720p video is really great, and amazingly for its size it has an HDMI out.
You can get it for under $200 now.
Also, if you want to step up to a much higher quality image, bigger sensor, and some real manual controls, the Canon S90 is amazing. But it's a bit more at around $400. It is about the smallest camera on the market for it's class, it's almost at the level of the G11, but just on the large end of the compact point-and-shoots.
I also just noticed Doug b posted above the Panasonic Lumix LX3. The S90 is a direct competitor of that camera. The S90 is a bit cheaper, easier to find, and definitely smaller and more compact. However it does not shoot 720p video like the LX3 does, and some say the LX3 has slightly better IQ. Also it's preference about the controls layout. They both shoot RAW. And I think both are pretty darn awesome.
But if you want really small and cheap, the SD780 would be better of my two picks. There's a lot of good quality compact point-and-shoots out there for cheap now though!