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If you’re looking for a high performance camera with great image quality, you should get a digital SLR, right?

Well yes, DSLRs are top-drawer picture-takers. But they’re bulky and they weigh a ton. They also aren’t exactly the most discreet cameras out there — put a long zoom lens on a DSLR and try to take it to a pro sporting event or a rock concert and, unless you have a press pass, you’ll be sent packing.

A far less conspicuous and more portable option is the Canon PowerShot G12, a compact, consumer-style 10-megapixel camera with the photo skills of a serious pro model.

Small cameras with advanced features are nothing new. In fact, with the advent of Micro Four Thirds models such as the recently released Olympus EPL-2, and the growing popularity of compacts with pro-style attached lenses such as the Panasonic Lumix LX5 — Wired’s 2010 camera of the year — these pocket rockets are all the rage right now.

Canon’s been making powerful, petite models in its G-series line for over a decade now, with the 3.3-megapixel PowerShot G1 premiering way back in September 2000. With the G12, we only get a handful of technical advances over its predecessor, the (duh) G11, but they’re enough to make a good camera even better.

For starters, let’s talk about what they didn’t change from the previous model and why it’s a good thing: the resolution of the imaging sensor. Nowadays, you can now get entry-level digital cameras with 16-MP sensors, but the G12 is stuck at 10 MP. This is progress? Absolutely.

Cramming too many pixels on an imaging chip the size of a fingernail means smaller pixels that absorb less light. The result is crunchy-looking photos full of ugly image “noise” when you shoot in low light without a flash. Most manufacturers think consumers are unaware of the negative effects of the Megapixel War, but Canon is ignoring the marketing grab and striving for quality instead.

Canon hasn’t messed much with the design of the G12 and that’s also a good thing. The abundance of external controls on the camera mean there’s no need to dig through menus to get creative. If you like changing the sensitivity of the imaging chip for low light shooting, a dial on top of the G12 lets you adjust the ISO setting in precise 1/3-step increments. No, you probably don’t need to go to ISO 250, but it’s cool that it’s possible with this camera. I also liked the control dial on front above the hand grip that lets you quickly change shutter speed and aperture with your forefinger.

One area where I was hoping for an upgrade with the G12 is the LCD screen. It’s still a flip-out, vari-angle display that helps you compose over-the-head or down-low shots, but it’s still only 2.8 inches in size. A bump to 3 inches would have been appreciated. The G12 also keeps its optical viewfinder, but it’s as tiny as a peephole.

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