Its lens doesn’t zoom as far as many (including myself) would like, but if image quality is the utmost importance, the Sony RX100 sets a new, very high standard for pocket cameras!
Luminous Landscape says this:
The hottest high quality pocket camera of the second half of the 20th Century was the Rollei S35. Small size, great lens, and capable of top image quality.
Now, Sony with the RX100, which started shipping world-wide this month, seems to have stepped into the S35’s shoes. The RX100 is with little argument the best digital pocket camera to date. All the right boxes have been checked. Inexpensive it’s not, but it is pretty terrific.