^ITs only marketing talk re...they need to promote the newer stuff by marketing the digic III processor and the noise reduction...otherwise, who is going to buy the new one at a higher price?

I'm not saying tht it is not an improvement over the S3..all i'm saying is tht the improvements done are not really worth the extra 2.6k (~14.6k grey market price)...the digic 3 is supposed to reduce noise in the S5 , but pics have a lot of noise at higher ISOs in low light condition because in the S5, they have really pushed the small sensor to its limits to get the 8mp resolution..
But yes, if u really want a bigger LCD, 8 mp res and hot shoe for external flash, then get the S5...

U can check this review and judge the pic quality in the night shots..
DCRP Review: Canon PowerShot S5 IS