Not every snapshooter needs the latest camera. And price reductions for last year's gear can be substantial.
Bottom line is that you get 922,000 dots on the touchscreen LCD for the S120 vs about half as many on the S110 (which still has a touchscreen). Other improvements include a faster burst mode, a wider variety or resolution choices, f/1.8 vs f/2 max aperture, and a little faster performance. And to be honest, that's about it. Both have WiFi, RAW, and terrific image quality.
If I were to buy a top notch compact camera for an enthusiast photographer as a gift, I could swing $219. But $399? Probably not.
I enjoy covering the latest and greatest technology. As far as jobs go, I have a great one. But when it comes to spending my own money. Last year's models are often the true bargains.