I have bought a G7, even without raw. I decided to stop complaining, and just moved on, focusing on the many good things the camera has to offer.
So I am now experimenting with different Custom and preset profiles: there are many to chose from: neutral, vivid, positive, etc. Actually, it's like chosing different films for different objectives.
In my mind, it feels a bit like having to make a decision before pressing the shutter; whereas with raw, you can make the decision later on.
My findings so far are that with good use of the histogram and these profiles, the results are quite pleasing. And given that I am a slide film user, I find that even without raw, the G7 can nail some shots that slide film could not.