What's that's for man...?! A not here nor there flash.
Personally, I think it goes well with a compact like G10.
Yeah, quite likely pre-flash for AF assist. Think the old film EOS30/33 film camera built-in flash used this method too.
To use it on a DSLR is just so... lame. There's already a built-in flash on the xxxD and xxD flash. Who would pay another expected >S$200 more for a puny flash just so you can bounce but with limited guide number? Might as well pay a bit more and get a much more powerful and versatile 400 series flash.
As for the higher end cams, like 5D and 1D series, oh man... dun even talk about it! If you can afford such an expensive and relatively bulky cam, dun tell me your reason for buying this flash is cos you have little cash left, or you want to move around just that bit lighter and dun mind compromising on flash quality when you really need it!
Another Canon marketing.... It's time the engineers from the flash department talked amicably with their camera body department. Are they enemies? Incorporate IR communication between cam and flash without any gimmicky ST-E2!
Maybe Canon is making a quick buck out of unsuspecting newbies in this economy crisis by selling their looks-fun-but-limited use mini external flash. *tongue-in-cheek comment*