Thanks for all the great suggestions. I'm going to take some time to research this on the bench with a scope and play a bit. I was more interested in the space savings of not using the cap as opposed to the cost savings. I admit that the 78xx series is a bit old but I needed to get something...
While using a genaric LVR such as a 7805 where the supply is from a battery is it typical practice to use a filter cap on the input. I'm looking at an application where I'll be suppying 100mA peak with a typical operating current of 3mA to a few Digital Panel Meters. The input will be coming...