One problem I've had with the digitals are the buttons are friggin tiny, but I would reccomend them strictly for the ease viewing the screen instead of a tiny viewfinder.
If you want a compact 35mm with an easy to use viewfinder, the canon sureshot and olympus trip have some models that would fit the spec, but they are auto cameras with no exposure compensation. However both of these are pretty cheap quality wise. The older (not as compact) point and shoot cameras such as nikon l35, canon af35, etc. are good quality but I'm not familiar with them enough to tell you if they have exp compensation.
Really, if your gm is OK with a larger camera, I would reccomend getting a intoductory modern AF SLR like the canon rebel or nikon n55, etc. They are lightweight, dirt cheap these days and have some manual controls.
Another alternative is a rangefinder camera like a leica or voightlander, but then you have manual focus.