Debated between the Sony H2 and the Canon S3IS myself for months. Finally, ended up with the canon based upon some recommendations from some people I talked with, it is 6MP instead of 7 like the sony but if you hold two pics side by side you won't tell much of a difference. My decision to purchase was based off a few things, 1.) the Canon provides a terrific Image Stabilization even at high zoom, 2.) the advanced (manual) options on the canon are a bit better (not that I will ever use them but just in case) and 3.) I figured Canon specializes in Cameras and Cameras only so they ought to know what they are doing while Sony makes everything.
The other thing I disliked about the Sony was you have to purchase a Sony specific memory stick which runs 50-100 bucks while you can pick up any SD stick (I got a 1GB Sandisk stick for $5) for any other camera on the market. Just my .02 cents, they are both great cameras and I am sure both will suit everything you mentioned plus more. If you want to see some pics from the canon let me know.
Kratz
