Yeah, I hear what you're saying about the limitations of the
zoom lenses, but the trade-off is that when you're travelling,
switching lenses can be a real pain.
Here's my setup when I travel:

Pardon the quality of the shot - I took in fairly low light with my
S1IS. 
Canon 400D with a Sigma 28-105mm f/2.8-4 lens, with a Cullmann
tripod/shoulder stock. I'll admit that even the kit Canon lens does
provide sharper images close up, but when I'm out and about, this
setup does the job just fine. I'm a fan of fast lenses, and good as
image stabilisation is, it still won't make up for moving
subjects.