I came across the LowePro D-Wrap at Best Buy today for $12.99. Eschewing the traditional camera pouch, the D-Wrap attaches to the tripod mount of a compact camera and its soft neoprene material wraps around the camera body, fastening back on itself through a large velcro patch. The advantage of this approach is that the wrap is always attached to the camera - rather like the old leather cases for 35mm cameras. The disadvantage of course is that the side of the camera is not protected.
It is a novel idea that seems to have potential, so I bought it to try with my Canon PowerShot S90. It fits - only just though. If it were not for the elasticity of the wrap material, it would be a no-go for this camera.