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- Sony's CyberShot DSC-U20 can also compete for the title of the smallest digital camera, but it's loaded with features to boot! It comes with a 2.0 megapixel resolution and expandable memory storage using Sony's memory stick technology.egapixel. It's not built for serious photography. It also doesn't have any zoom function to speak of, but at a price of less than $40, it could be considered a good value digital camera.Casio's Exilim EX-M2 is probably the best investment when it comes to compact digital cameras. It also comes with a 2.0 megapixel resolution, but it can also play mp3 files and record voice conversations. The only thing going