I have been working on a draft of this post for some time. It was going to cover how stupid the megapixel race was, especially in tiny compact cameras. How stuffing 10 MP into a tiny little sensor was more than stupid, it was outright bad for the consumer.
However, Digital Photography Review has put together an article about misleading High ISO in compact digital cameras which also covers this issue in much greater detail than I was going to (but I did have a little diagram! :)
Overall this shows how desperate the manufacturers have gotten to sell yet another compact camera. Even in DSLR cameras. I was quite happy with 6MP. Sure, 10 will be nice, but so would 8.