Horses for courses, as they say. My Powershot Pro1 is a quite capable little package. There are digicams, and then there are digicams; as there are DSLRs, and then there are DSLRs.
I like the flexibility of the Pro1, well built, small, excellent lens, very nice for landscapes and travel. If I use it with the same approach and workflow as for my "serious" camera (1V), results are not limited by the camera, but by myself.
So yes, these "serious" digicams are very capable and useful photographic tools, and have their place. I am still waiting for the digital equivalent of a Leica CM, or Ricoh GR1V, or Rollei AFM35, though.