The whole reason these cameras are attractive is due to their tiny size.
You will be making compromises in both flash effectiveness and resolution compared to a "normal" sized camera.
Personally, I think for a tiny camera, the Pentax Optio 330 is the way to go since it's 3.34MP, 3x optical zoom, closer to the size of the S110/S200, and offers manual modes (including manual focus).
However, if you do not need a tiny camera, you will get better flash, better resolution, better features, and better price from a normal sized camera!!!
Olympus digicams are fantastic if a normal-size, plastic-bodied camera is good enough. I used to swear by Olympus digital cameras and have owned 5 of them. I went to the Pentax (and seriously considered the Canon Digital ELPHs) when I wanted a teeny weeny metal-bodied camera that fits in a pocket. If size didn't matter, I'd probably get a 4MP Olympus or Canon.