Ultracompact cameras are a handy way to keep a camera on you at all times — they're designed to fit in your pocket. However, due to the limited space, the optics may not be quite as good as larger cameras. This means that you may not be able to zoom in as far, and special modes like "macro" (used to take pictures of small subjects like wildflowers) may be missing.
Some Ultracompact cameras are small enough to fit in an Altoids tin, while still having very decent picture quality. For many users, Ultracompact cameras strike a nice balance between size and image quality.
If you really want it small, and cell-phone-camera quality is enough for you, check out the really tiny keychain cameras and pen cameras.
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