The A720 IS is clearly aimed at photographers who expect a bit more from their camera than a simple point-and-shoot snapshot can provide, and this naturally includes superior image quality. 8MP is about the optimum resolution for compact camera image quality at the moment, and the Powershot A720 IS performs better than most.
The 6x zoom lens is particularly good, providing a huge amount of fine detail with good edge sharpness and very little barrel distortion at wide angle, although there is a little pincushion distortion at the telephoto end. Dynamic range is very good considering the small 1/2.5-inch sensor, with excellent shadow and highlight detail even in very high contrast shots, and colour reproduction is typically superb. Noise control is also well above average, with very good image quality at 800 ISO, and usable results even at the maximum setting of 1600 ISO.
All in all, an excellent performance from a very accomplished camera.