It's not the tool, it's the craftsman
Alex Majoli is a Magnum photographer who has shot in China, the Congo, and Iraq, and he has won honors like U.S. National Press Photographers Association's Best of Photojournalism Magazine Photographer of the Year Award (boy do they need an acronym).
His tool of choice? A simple Olympus digital point and shoot.
Some of his photos and some elaboration on his techniques here.