I helped shoot my brother wedding, and some of my best candid shots came from my point&shoot. You can be sly about it using the LCD. People don't realize that you are lining up a shot on them and you capture that moment. When people see me with a SLR, they often stop and "pose".
So, I'll bring my P&S along when asked to shoot some event. It is a potent tool to have along...
Tim