While not much of an improvement over its predecessor, the Sony Cyber-shot DSC-N2 remains a very good ultra-compact camera, and it earns my recommendation.
It has a nice selection of point-and-shoot features, good photo quality, snappy performance, and a capable movie mode. The DSC-N2 looks just like the Sony DSC-N1 before it, aside from its new champagne gold color. That means that it has a compact metal body, a 3X zoom Zeiss lens, and a huge 3-inch touchscreen LCD. While the touch screen feature is a cool thing to show off to friends, I found that its constant need for cleaning and the clunky touch-based menu system was frustrating.
The LCD’s outdoor visibility was just average, while in low light conditions it was better, as it brightens automatically so you can still see your subject. The N2 lacks an optical viewfinder.