Originally Posted by stroberaver
I'm confused by what you're saying. First you advise that 3mp is sufficient if it has low noise, but that if buying new, more mp is better. Yet the low mp cameras have low noise
because they have a lower pixel count, and vice versa. More pixels crammed into the same space = more noise. Imho 10mp is way over the top for compact cameras due to the physical size of their sensor. All it will do is give you bigger files without any discernible increase in image quality compared to, say, a 6mp camera. Huge mp counts on compact cameras can lead to lots of noise and limited useful ISO range, and I'd be surprised if the optics on compact cameras are good enough to resolve the extra detail a 10mp sensor can (in theory) pick up.
My old 4mp compact camera gave better image quality than a friend's 6mp camera. Why? Because it had a better lens, better metering, and better processing. Megapixels has nothing to do with the image quality, so don't pay any attention to the megapixel race.

3mp is sufficient for normal use, with other things being good. But the lowest I've seen available new now is about 6 mp, so that should be the minimum to go for.
More pixels in the same space equals more noise, and no compact camera will be reasonable to use much over iso400. But newer sensors are better at coping with noise, so an older generation 6mp camera may be comparable in noise to a brand new 10mp camera, assuming both are/were decent.
Ideally I would say "go for a full frame camera like a canon 5d, as the noise levels are fantastic", but they cost a packet, and are not what the op was looking for.
The op wanted "to get them printed big enough to go on the wall in the lounge", so definately the more pixels the better. There will be some noise issues at higher sensitivities, but that is inevitable with a compact.
The camera manufacturers are pushing the megapixels as for many people it seems to be the determining factor in buying a camera. Yes, putting a 10mp sensor in a compact camera is overkill. But the newest cameras will have the best features and technology, so unless you decide to go for a Leica M8 or similar, you will sacrifice some slight noise for the better overall package.