Here are some photos taken just a couple of days ago, in the so-called Mutrah Corniche and Souk area of Muscat. Once inside the narrow souk alleyways, ISO 400 and f/2.8 was the norm. Some shots inside the shops were at ISO 800.
I can say that I was favourably impressed with the detail at ISO 800, after a bit of noise reduction. Way better than my benchmark for high speed film, the good old Fuji Provia 400F. I think that coming from slide film, I do not worry too much with noise, and thus I am able to simply enjoy the great camera that the G9 is.
Links are to my website, as usual:
http://www.paulobizarro.com/foto.asp?id=1297&t=35(this photo represents more than 50% crop of the original image, so sometimes a lot of megapixels are actually useful!).
http://www.paulobizarro.com/foto.asp?id=1296&t=35(fancy a scent? This one is ISO 100, so I suppose IS is useful).
http://www.paulobizarro.com/foto.asp?id=1295&t=35(ISO 400, but the colours are still beautifully preserved).
http://www.paulobizarro.com/foto.asp?id=1294&t=35(ISO 800, to be able to capture the incense burner inside the shop. Also, the faster shutter speed has frozen the smoke. I have applied a bit of noise reduction, using Canon's Adaptive Noise Control, which works quite well).
I know that 800x600 pixel JPEGs are not representative of image quality, but I believe that the G9 delivers pretty good results, for such a carry-friendly camera. RAW is certainly worth it, if you are a serious photographer and want to get the best out of the camera. I am still processing with Canon's software, because the ACR update does not run with my version of Elements. I know that many bash this software, but I think that the RAW files I start with do not need that much amount of post-processing to get them right. Will probably update in the future to ACR, but that implies buying Elements 6.
Also, quite often the question is not "what camera", but rather "how to use the camera that I have"? I have photographed in these places before with Panasonic LX2 and Ricoh GRD, and each one is capable of a fine job, if you are willing to put in the effort.