Some of the P&S models have very good lenses. Others, such as my wife's Canon Snappy had a fixed-focus (nothing ever sharp) lens that was unimpressive.
I bought her an Olympus something or other that had a great lens and a horrible squinty viewfinder. It was stolen in China. My wife also lost my Rollei 35T that I used from 1979 to 1991. But a camera is just an object. I still had a Rollei 35S, but I always missed the 35T and eventually bought another.
My daughter dropped her Kodak disposable into the moat while on a tour of the Forbidden City in Beijing. That's a real inexpensive P&S.
The Lomo is a cult camera that produces technically mediocre photos, but users love it.
I've gotten nice photos with a Rollei Prego 70, but I think the lens is a bit too slow.
Right now, I'm messing about with a Rolleimatic, which has a Tessar-type lens. It's very nice, although it's a zone focus camera. I'm also playing around with the Rollei B&W disposable, which I won't dispose of but will reload. The front of the camera is clear, and when the flash goes off, it blinds you.
There are a lot of choices, and the person behind the camera is more important than what's in his or her hands, for sure.
I think it was Lens Work that had an interesting article about a woman who made her own lenses from soft drink bottles and all kinds of oddball things. Her photos were very interesting.