If you want pure opinion, here's one -
The "last year" 5mp models shoot just as good pictures as this year's 7mp models. That's because the 7mp are crammed into a sensor the same size as the 5mp ones, but they still haven't solved the sensor noise issue so with a 7mp you get a very high resolution picture that has a lot of noise. It's the equivalent of using higher ISO film. They then apply noise reduction algorithms, which blurs the image so you might as well have just used lower resolution to begin with.
Basically if you see 2 similiar cameras, one 5mp and one 7mp, don't pay any more for the 7mp one because the image quality isn't any better and it might even be worse.
FWIW the best images from a point and shoot small digital camera I've ever seen came from my Mom's original kodak, with a 2ish mp sensor. Clean images, better low light performance, overall a much better picture unless you're making big prints (over 8x10).
For image quality, there is no substitute for lense size/quality and sensor size. Above 5mp and sensor resolution really doesn't help at all and might hurt image quality.