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Pros:
Excellent daylight picture quality, with good white balance in auto mode.
Good picture quality for low-light and night shots, especially after you take control of some of the settings (especially ISO - keeping it under 400 really helps). I had to go to the manual white balance modes only a handful of times - other than that, I was really happy with the automatic mode. For some indoor shots, the warm colors of incandescent lighting might be even considered a plus.
Fast, shutter lag in non-existent once the exposure and focus are set - makes it much easier to capture those split-second moments. Once you realize how the auto-focus operates, it's easy to have the camera focused properly in no time.
Slow synchro flash option, and 3 levels of flash output in manual mode - that way you can avoid the over/under exposure situations caused by the flash. Being able to use the flash as a fill-in to compensate for a backlit subject, while avoiding overexposing a very interesting background is a big plus.
Fully manual controls.
Good choice of semi-automatic controls.
Optical image stabilization - and it works, too!! I was able to take a picture of a CH-53E Super Stallion helicoper, hand-held, at max zoom, with the helicopter being about 2 miles away - and I still had enough resolution in the picture to be able to count the blades on the rotors.
AA batteries - try buying a proprietary Li-Ion or charger at a gas station. Ni-MH rechargeables are cheap and easy to find, and if you can't keep those charged and ready to go, you won't do any better with a proprietary battery. I read reviews from people complaining about battery life - there's something wrong with their batteries and chargers - I have three sets of 2300 mAh NiMH batteries, and all of them are good for some 400 pictures.
Good zoom lens, decent optics - F2.8 for a 10x zoom lens is impressive.
Small enough to carry around - thus, when the perfect shot shows up, you'll have something to capture it with.
Decent continuous drive mode.
Standard USB cable, the kind that you already have a dozen of them around the average household.
Good, intuitive, easy to use menus.
AA alkaline batteries and 128 MB SD card included - so you can test your camera right out of the box.
Cons:
No printed user's guide - just a quick reference guide.
Only supports PictBridge, no way to have it set up as a mass storage device for picture transfer. Easier to use an external SD reader.
No viewfinder - although the LCD does a good job by itself.
Battery level indicator - it would be nice to get more than a "Low battery" indicator. Once you see it, you can take another 20-30 shots with a set of NiMH batteries.
Some purple fringing along the edges, especially when transitioning from an overexposed area to something a lot darker. Not a lot, though - I've seen much worse. Did some experimenting with some infrared LEDs, and got the same effect and color - so I'm starting to believe some of the purple fringes are caused by infrared light hitting the sensor, slightly off focus due do the higer wavelength. I'm still looking for an infrared blocking filter to test this theory in full.
No optical zoom during movie recording - only digital.
No 3:2 picture aspect ratio - only 4:3 and 16:9
No automatic exposure bracketing mode - it can be done manually, without too much hassle.
Could benefit from longer exposure times, and smaller apertures - but the available selection covers about 95% of the situations that you would encounter in day to day photography. A software hack developed by a group of enthusiasts, called CHDK, is in the process of being ported to the SX120 - it will provide, among other things, exposures up to 64 seconds, the ability to take RAW pictures, battery voltage, live histogram and optical zoom during movie recording.
Overall, after using it for 6 months and taking more than 2000 pictures, I would give it 4.5 stars - it's not perfect, but for this price, you can't beat it.
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