You guys are comparing a consumer 2 megapixel camera to an aps sized sensor (23.7mm x 15.5mm) they are in totally different leagues.
I doubt that a 2mp camera, even with the larger sensor, would look good enlarging to 20x30 prints. But 8x12's I'm sure will look just as good as the 35mm.
I personally like my photos to look quality and do not go beyond the specific formats limitations.