We've been waiting for this feature for a long time, and at last Canon have done it, albeit with 720p/24 HD video (the same as the Nikon P7000). Other than that, things are pretty rudimentary, such a 10 megapixel CCD sensor, 5x lens with teleconverter, DIGIC 4 processor, and 2.8-inch 461k-dot articulated LCD (remaining the same as the now defunct G11). The difference though is that you now get new Canon's Hybrid IS system from the S95 for better macro performance, along with a new HDR mode and front command-dial. It'll be $499 when it hits in early October.
Check the price of the Canon PowerShot G12 (Amazon US).