is there a gap in the market?

I hear a common refrain from owners of every brand of camera lamenting the lack of portability/weight of their kit. 'What compact do you have as an everyday camera?' is a question often asked on photography forums by people who have wearied of the novelty of the weight and bulk of their SLR cameras.

I can't imagine going back to a compact after the pleasure and results I've had from my 2 Pentax DSLRs. However, I would give anything for Pentax to come out with something more the size of the Oly 410 or even smaller. Seamless live view like the new Sony would be good, too. I see my grandchildren only once or twice a year and it'd be nice to be able to take pics of them without a big black thing covering my face. One can take photos much more discreetly and unobtrusively with a camera in the lap.

What do you all think? Do you believe there is a market for a significantly smaller DSLR than anything the major companies have on offer currently?

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Pennyanne