(Updated January 2016)
Q: There are a lot of cameras out there… which is the best?
A: The best camera is the one you have with you.
This is why I love the camera on my smartphone (and the reason I recently upgraded — I got a camera 2X better for $200... which, from a camera POV, is a good value). The great thing about smartphone cameras is that you often don't look like you're taking a photo at all, which can be a bonus in a store or crowded train car. However, sometimes a smartphone camera is not enough — the images are less detailed (lens) and have more noise (sensor). It'll be a long time before a phone will completely replace a camera.
The "what should I buy?" question is a common one with variables that continue to change: cost, size, complexity. I'll keep this post updated with new models as they arrive. Otherwise, DPreview.com does a good job of explaining it all, and I'll reference their reviews below.