At last check, digital point and shoot cameras were up to 12 megapixels. This begs the question, can you have too many pixels? Is there a point where more pixels will actually degrade the picture quality?
The answer is yes. Because point and shoot cameras have a fixed size to play with and the fact that consumers tend to like smaller cameras, this keeps the image sensor size small. A higher megapixel camera basically means more pixels crammed into a small space.
The result? Light spills more easily between those 12 million pixels compared to a proper digital SLR with the same number of pixels. This causes noise, a decrease in contrast and sensitivity, and ultimately a picture that is worse than one captured with a bigger sensor.
If you are interested in more technical details 6 megapixel is a good resource.