On my last trip to Europe I took my d-SLR camera and a three lenses with me. It was a major decision on figuring out which lenses to bring along. Hindsight brings me to the conclusion that I could have done the whole trip with my 18-250 lens. Yes there would have been situations where this lens wouldn't be the best choice but I would have been traveling a lot lighter and worried less about leaving my gear in the hotel room. Having said that I will still bring my d-SLR camera and good glass on my next trip.
I packed a point and shoot camera as an afterthought and I was glad I did. I have a Canon Power Shot SD960 IS. I like it because it is about the size of a deck of playing cards so it is really easy to carry in your pocket. The camera is under $200 and with the features it was well worth the price. It is loaded with features that I really like and it shoots also video clips. As it worked out I took this camera everywhere and ended up taking the lion's share of photos with it. I picked up a table top tripod while on the trip. I found that inside of the churches and some of the low light buildings this camera worked great. By extending the legs of the tripod and placing them over the backs of the pews and using the self timer on a 2 second delay I managed to get some very wonderful photos of the insides of churches.
One of the really great features of this camera is that it has a 3200 ISO feature so when I visited museums I was able to take photos without a flash. Museums don't like you to use flashes as the light from a flash is equal to about four hours of sunlight. This size camera is also very good at taking photos in display cases. You just put the lens against the glass and take the photo. I found that using the macro function here really helps.
So if you are going to make memories then I'd suggest taking a point and shoot camera and a table top tripod along with you. I would also suggest that you get a compact mirror from a dollar store. You can use the mirror in situations where the LED screen is difficult to see so just hold the mirror up so you can see what you are taking a photo of.
There is another nice thing about this camera and that if you wanted to have prints made from the photos you took you can get these printed around 13x19" size if you wanted.
A small camera that fits in your pocket will greatly enhance your abilities to preserve those wonderful moments of your vacation. My motto of "The only bad photo is the one that wasn't taken" works with this. Photos that we take on vacation are just little triggers to our memories. Would we like it better if the photo was in focus better? Yes it would be nice but it will still trigger your memories.