Yup, I take mine with me on holiday. And a couple of compacts - one waterproof and the other a miniature one.
We go to Crete and I'm not really a beach person (I go red, then my skin peels off), although with copious amounts of P20, I'm very happy snorkelling for a couple of hours so I keep myself occupied taking photos. Plenty to take there, from the obligatory ruins, sunsets etc to less obvious subjects (contemplating a set of roadkill studies...). The camera bag is my carry on luggage, with any spare slots taken up with an extra pair of socks or kex.