I've decided on the Canon S45 as a backup to my Canon G2. It has the same 4 megapixel sensor as the G2 and the rest of the specs are close enough. The canon s45 was another camera that I owned in 2002.
For printing my snapshots I decided on Epson's Ultra Premium Glossy 4"x6" paper. I have no idea what makes it Ultra Premium, all I know is that for 100 sheets it was cheap.
I now turn my search for photo albums that can hold a few hundred 4"x6" photos.