I carry a Nikon 3100, which is (of course) discontinued in favor of the 3200. The only major difference is that the older camera took Compact Flash cards, and the newer one takes SD cards. Both take 2-AA batteries, so you can use rechargeable NiMH batteries at home, and AA Lithium on the trail. The camera is small, light, and takes decent photos under most conditions.
You might also look at the Pentax Optio waterproof camera (I forget the model number), which takes 2-AA batteries and SD cards, and its extremely water resistant, might be useful outdoors. Also a very small camera. Pentax also makes an Optio model that fits in an Altoids tin -- kind of impressive when you pull it out, but maybe not all that useful.
There's not much difference between CF and SD cards anymore. I like CF cards only because I already have about 8 gigabytes of them (I make a living as a photographer when not hiking).
In reality, you can safely buy on features -- most digital cameras are excellent. I like AA batteries, 3-4 megapixels, small and lightweight, and an optical viewfinder (saves batteries).
Hope this helps.