Me too had the same dilemma u were having aound 2 months back.
Now I've a H5 with me.
Bottomline:
If u want dust-free pics, try the H5, which is around 3k more than S3.
Both have same specs, except for the fact that H5 has 1megapix more, a 3" LCD (largest in prosumers) while S3 has a swivel LCD. S3 also scores a little in the video dept with a little better video.. very little. H5 also has a higher purple fringing.
But that can be reduced by Photoshop.
I'm very happy with my H5.
For u, just point out what u want... list +ves & -ves.