Sony H2 does have an IS, optical one at that! It's comparable to S3 IS in almost all features, but then, I'd grab an S3 IS on any day! Infact, last week, I coaxed one of my friends to go in for an S3 IS over a H2!
I recently bought Powershot A710 IS for 11K (inclusive of a pouch, 1 gig SD card...