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One of the reasons that most digital cameras work poorly in low light is the speed of the lens. This is a topic that used to be discussed a great deal with the regular 35mm cameras (i.e. How fast is the lens?). Things pretty much went down the tubes in terms of speed when the auto focus 35mm started being made. The digitals are an extension of that trend. So, if you want speed; it will cost you dearly.
Same principles apply to digital photography as regular film type photography.
One of the bigger problems with digital cameras is camera motion (hence the picture is blurred slightly). Small pocket sized cameras are very difficult to hold still without a tripod. That is why you see the full sized digitals being manufactured and sold by companies like Cannon and Nikon. You pay for quality.
All that being said, I have a little pocket sized digital that I use most of the time. I just don't try to take pictures that are beyond its abilities. It is mostly for snap shots.
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