Argh, I forgot about the other "Find Me A Camera Thread". Could someone delete?
Depends on how much you're willing to spend. A 'good but pricey' small camera would be a micro four thirds, specifically the E-PL1/2/3 or GF1/2/3, otherwise some of the higher-end compacts, such as the Panasonic LX5 or Canon SX230/20 would give you the same manual controls. Depends on if you want to take a second lens and a small bag, or just something to point and shoot with.
I've only heard good things about the digital Olympus Pen cameras. The Canon `Powershot G series are great little cameras as well. If you want smaller, there's Canon's S95. It shoots RAW, has a 28-105mm f/2.0 lens. Decent for lower light situations.
But quite honestly, if people question you because you're taking photographs, you should tell them to fuck off.
Alternatively you could get some business cards designed and printed. Whenever someone questions you, pull out a card and give them one. Your work is definitely good enough to pull that off too.
If you are looking for a mirrorless interchangeable lens camera I would say go with the sony nex 5 or nex 3. The full size sensor is MUCH better than any micro 4/3rds camera. They are a tad bit more expensive, but you can get very high quality DSLR pictures from it. Check my flickr for some examples.
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