I just ran a test with the A610 at 140 mm (full tele) and an effective 560 mm with digital zoom. Noise reduced both the 140 mm image and the digital zoom image with NeatImage, then cropped the middle piece out of the full tele version in Photoshop and upsized it to the same pixel size as the digital zoom image using Photoshop's bicubic smoother interpolation -- which is the appropriate method when you're increasing resolution. (Otherwise, you'd be enlarging the jaggies.)
Neither the digital zoom nor the PS crop version was very appealing to the eye -- my eye, anyway. Maybe they could be sharpened up a bit, but actually images like this don't respond very well to sharpening since they have very mushy edges to begin with. If you had the full-size images you'd see that the PS crop looks ever so marginally sharper. The difference is virtually indistinguishable when reduced to a web-able JPG, so I didn't bother to post them for your viewing displeasure.
The digital zoom JPG is slightly larger than the Photoshop crop JPG, suggesting that it has more small things in it. Small things could be detail or they could be noise. In this instance, I think they're noise, not detail. The PS crop was noise-reduced before cropping; it cleaned up as well as NeatImage is able. The digital zoom image didn't clean up well. I think the NeatImage profiles don't really apply to the digital zoom image, since the sensor noise has already been resized in the camera when the image is upsampled, and we don't have a profile for that (bigger lumps of noise). The comparison might've been more favorable for the digital zoom if I'd shot at ISO 50 rather than 100, but I didn't, and that's that.
The pro-digital zoom argument is based on upsizing the RAW version in the camera before converting it to JPG. Given this test, and another like it I did a few days ago, I'm not sold on digital zoom, that argument notwithstanding -- unless you just lack the means, motive, and opportunity to crop your images afterwards.