Have the G11 and whilst I'll use the optical zoom I've never used the digital zoom as I'll use photo editing software to crop in if necessary (effectively the same thing but more control and I haven't 'thrown away' the remainder of the image) - only use RAW
I guess if I absolutely
had to process everything in-camera I'd be happy enough to use the digital zoom
Here's a shot of my "new" dog taken with the G11 a couple of days ago - a rescue who'd been abandoned on the moor (the dog not the camera!

)