macro :

hey, 1mm vs 1000mm (=1m) is not the best excample ;-)

btw, a lens which would focus at 1mm distance will produce extreme distortion. And you will alway shadow your subject.

A lens which has a mcro mode at 2" with a 120mm (35mm film equivalent) is much better than a lens with macro mode at 1" at a wide angle setting, lets say 30mm.

it is much better to compare minimum object size (this is how macro works in analog photography, by saying 1:2 or 1:1 the size of the film 24mm x 36mm) than minimum working distance.

hmmm, have you checked out Minolta f100, which is a very nice and very small 4 MP camera. Only drawbacks, the lens is slow and the monitor consumes a lots of power.
Minimum macro size is something smaller than 50mm x 40mm (at a long distance, bacause it is in tele setting, so you can even use the built in flash in macro mode !!!). I don't know it exactly at the moment.