For that Canon G12 for a bit more Canon G1-X.
Very good choices, I have tried both. Also, take a look at the canon powershot SX1 IS: It is a compact superzoom (the zoom is NUTS) with movable screen, lightweight, smaller in weight and size than a dslr and has great feature...such as miniture mode (makes it look like your shooting with a very expensive tilt shift etc.) Full HD video as well.
I just bought one used for my gf to get her into photography for 200 quid in perfect condition from London Camera Exchange. We took to on a recent trip to Canada, in which we took it everywhere, and even to the EuroKracy euro show in Montreal and it was awesome. Found myself using it LOADS, I love it. Has a good auto mode, and m mode which is very easy to use.
I hardly used my DSLR which is surprising (aside from the shoot I did at the show itself), as I found myself constantly shooting with it instead due to its ease of use and small size. Originally I bought my gf a Canon 400d dslr, and she just couldn't understand it, and would get frustrated that the quality of pics were not even close to my Nikon d300....bless her.
My hopes of her getting into shooting was almost ruined, until I she got this. She absolutely loves it...and as a photographer, I can admit I do as well.
I will post some pictures I took with it this week, you will be surprised!
Hope that helps, Neil.