Well, asking about "best" compacts is sort of like asking about "best" folders -- there are lots of excellent candidates, so the "best" depends on what you want.
Many birders believe the very best compact optics can be found in the Bausch & Lomb Custom 7x26. I've glassed them and they are awesome. But they're not waterproof or fogproof, if that is important for you. (msrp $480, street price ~$230) Excellent eye relief, 16mm, pretty rugged and water-resistant. (My friend uses hers confidently in light rain with no problems.)
Two highly regarded compacts with excellent optics, waterproofing/ fogproofing and very rugged construction are the Swift Trekker 712 8x26 (msrp $360, street ~$190) and Brunton Eterna 8x25 (msrp $230, street $180). Both are truly excellent; I own the latter. The one possible negative of the Trekker is its relatively short eye relief for eyeglass wearers, 14mm; also, it has rubber fold-down eye cups, which some folks don't like. My only big complaint with the Eterna is its relatively narrow field of view (270' at 1000 yds. vs. 363' for the B&L Custom and 341' for the Trekker). But it is bomb-proof (some might say "overbuilt"), has excellent eye relief, 18.5mm with pull-up eye cups.
If money is truly no object, then Swarovksi and Leica both make excellent "ultra-compacts," 8x20. I own and EDC the Leica Trinovid 8x20 (msrp $440; got mine for $300). Their fine optics in the smallest possible package is very nifty and impressive for what it's worth; bust honestly, for quality of view I would rather go with the B&L, Swift or Brunton noted above. All three weigh in at ~12 oz, vs. 8 oz for the Leica Trins. The Leica and Swarovski ultra-compacts definitely have "gadget factor" appeal and smallest possible size for quality optics, but there is an inherent compromise in such small optical architecture. (Same, of course, is true for compacts vs. midsize and full.)
Glen