Answer: If a camera appeals to you because its size is smaller than some other type of kit, then it is "compact" enough for us.
Cool, I almost picked up a cheap Lumix G2 but went DSLR for speed and low light capability, glad I did now, I just need to get out and take some pictures.
My desire for greater speed came about when I was working on a commercial and a friend and I where taking pics him with a Canon G12 and me with my LX-5 and our cameras were just not fast enough to get more then one shot before the car sped past. The guy with the modest DSLR had no such problems.
This is the commercial, some shots are done with a Canon 1D MK4 (not small). Mercedes-Benz C 63 AMG - It delivers
I recently bought a 35 1,8 AF prime for my D90 and wow!!! I already loved the camera with the big clunky zoom that it came with (18-105). With that smaller (and faster) lens, its a deadly combo.