Where does a compact camera wins over a DSLR!!?

Everyone has rightly mentioned portability and ease of use.

One other key area where a compact beats a DSLR is deep depth of field. The smaller sensor of a compact camera naturally means that the depth of field is deeper and more of the image is in focus. On a DSLR, you need to stop down the aperture to achieve a deep depth of field and this isn't always possible in low light conditions.

Other than this, the image quality is worse on a compact in every way.

Portability. It's a huge issue. With some photographers, it's either they get pictures with something light or nothing at all.

One instance when a compact wins over a dSLR is if the dSLR is in the hands of a noob who doesn't know a thing about photography while the compact is used by an expert photographer. Even megapixels can't save the noob in this case.

http://keerok-photography.blogspot.com/2012/09/pic...

You can pretty much take a P&S anywhere and I'm not just talking about portability. I was just admitted to a concert as a credentialled photographer, but none of us was allowed to take our real camera into the concert! They were allowed for the red carpet event only. I went out to my car and got my trusty P&S, which was allowed inside the concert venue. It's nowhere near as good as my DSLR, but at least I got some snapshots instead of nothing.

http://www.flickr.com/photos/samfeinstein/sets/721...

If you compare today's compact cameras with something a little bit older, they are so much better - how far back you go sets the standard. But having a camera always available - may be priceless.

Street shooters like to use compacts and range finders over SLR's as the latter is too conspicuous. A compact or range finder is discreet and people are less likely to notice or take offence. As a result the shot is natural and not so contrived.

They really only have portability going for them. There isn't anything else that they do 'better' than a DSLR.

Being compact. Nowhere else.

That you can take it anywhere easily.