Hi Diane:
For me, the G7 gets the call when I can't, or won't, carry a larger camera. Examples: social or family gatherings, casual walks, other events where a full-size camera would be boorish to have.
That was my original goal when I purchased a Canon S70 two years ago. With its RAW file format I thought I would be set. But, despite having RAW, I could rarely get S70 image colors to look very good. Also, the S70's shutter lag, and lag between RAW shots was uncomfortably long and images above ISO 200 were noisier than a day care center. So I gave up on the notion of a good pocket cam...until the G7.
Regarding the viewfinder, I know that many people really want to use an optical viewfinder on these little cameras. For the life of me I cannot imagine why. Yes, the G7 has one, and it displays approximately 80% of the scene. But it's a silly feature that offers limited functionality. The lcd shows 100% of the scene, plus exposure and focus status, in a bright, clear and large display (better than the 5D's). It's easily viewable in most light. Being able to compose and capture an image without pressing the camera to your face is, to me, a good thing. The only disadvantage of the lcd viewfinder is thee occurrence of vivid streaks (in the vf image, not the recorded image) when there are bright point-source lights near the edges of the frame, particularly in darker scenes. That's a pain, but one that's been with these little cameras for a long time, not unique to the G7, and is an annoyance rather than a disabler.
Ivan:
I have been using the following color and image settings on the G7 and have been very pleased so far. But I am still experimenting.
White balance: AWB
"My Colors":
Either "Positive Film" (good for well-illuminated settings) or
"custom" with Sharpness: -1, Contrast: -1, others at normal mid-setting. This "custom" profile has worked best for me in lower light scenes (ISO 400+) by allowing fewer opportunities for compression artifacts to appear due, I think, to contrast data miscalculations.
I've been using the camera almost exclusively in manual exposure mode and generally view -1/3 stop being a sweet spot. I find that its program exposures are a bit hot, a characteristic that can sometimes be hard to mitigate with only 8-bit JPG files.
Regarding print sizes, I've not had a need to print G7 images larger than a nominal 8x10 so far. (I did print one 3-frame panorama on 13x19 with excellent results, but that doesn't count.) I have no doubt, however, that a well-captured G7 image would easily be printable at 13x19 and perhaps beyond.