Someone has posted this question in the dpreview.com Canon forums - good question, asked a lot these days. It's a shame Canon has to release cameras like this so close together. Pretty good read, turns to crap in the middle when the glass vs plastic lens conversations comes up, but good information overall.
My view - the SD800 is the way to go. The 28-105 lens of the SD800 vs the 35-140 lens of the SD700 is my biggest reason.
28 mm is rare on compact cameras, especially Canon's (hopefully we will see more of this range going forward). You can count on one hand the number of ultra-compact cameras that have a 28mm or wider opening. If you are indoors then space is usually tight and you might not be able to move back into a position to take a picture that includes everything you want to include. The fact that Canon has finally introduced this wide end on their Elph series is indeed a nice plus.
On the long end whether you are talking 105 or 140mm - neither are a significant "reach" in length. Under most circumstances you can typically walk (yes, I know, odd suggestion) to get closer to the subject manner you are taking a picture of. And if you can't, then most likely even the 140 mm reach of the SD700 won't be enough to "zoom" in.
So with the new wide reach, Digic III processor and Face detection technology (which I believe is a very usable feature) the SD800 IS takes the honors. This is all IMO of course;)
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