Is there such a thing as too many features?

I recently bought a new Sony Cyber-Shot DSC-WX9 and after scouring the manual, I have to ask is there such a thing as too many features? The main feature I was looking for in a new compact digital camera was the ability to record videos in a format that the iPad could directly read.

The Sony has all the buzz words and more; it has image stabilization, 3D shooting, 1080i video recording, motion detection, background defocus, iSweep Panorama, backlight correction HDR, and something called Smile Shutter technology (which is actually quite cool where it takes a picture when it detects the subject smiling). I’ve figure out how to use a few of the features, but how am I going to remember to turn on a feature when I want to take a picture? I have no idea. Worse, I have to explain to my wife how to use it and use some cool features.

Does the average non-techie person figure out how to use 1/4 of the features of the devices? Should manufacturers reduce the number of features and make them easier to use? I doubt this will happen as features sell devices even if people don’t use them.