@tails:
No, it doesn't do raw. As for the UI it kind of straddles the ground between an Ixus and a Ricoh. I'm a Ricoh user and love the configurability of them, and the Pentax has much of that (most notably the green button can be configured to cycle through up to four common settings, just like the Adj button on the Ricoh). But it's also got dozens of auto modes if that's your bag. I just leave it in Program mode (unlik the Ricoh where that's about as auto as it gets, on the Optio that's as manual as it gets) with the green button cycling through compensation, sensitivity and WB.
A big bonus with the Optio is having the fixed focus modes that the Ricoh has: pan (aka snap) focus and infinity. This means no autofocus so the camera responds virtually instantly, and depth of field on a small sensor is so huge that accurate focus isn't important for anything over a couple of feet away. I wish more compacts had fixed focus modes.
Canons always irritate me in failing to remember various settings when powered down (eg they always seem to revert to auto flash) – the Pentax lets you select from a list of about a dozen things to remember or forget when powered down.
(BTW mine is the W20, they may have come on a bit since then.)