I think my search for the pocketable digicam is over...my previous ones like the Lumix FX55 and Sigma DP2 both had image quality issues, but with this Sony RX100 that I purchased in Aug 2012, not only can it fit in my trouser or shirt pocket, but it produces amazing pictures through its wonderful Carl Zeiss 28-100mm (equiv.) f1.8 - f4.9 zoom lens. Very easy to use and filled with an incredible amount of advanced features, from multi-frame auto-aligning mergeable photos as well as HDR to automatically generating a second image cropped according to what it thinks is a better composition than your original person shot!
Sony did some fantastic tricks to ensure that although it packed 20MP into a 1" CMOS sensor, it can control noise to a minimum even at high ISOs and give us fast response in AF and continous shooting or video.
You need a pocket-sized digicam because 1) the best camera is the one always with you, and 2) the need for discretion at some events, like visits to the hospital, going to funerals, attending meetings at office, etc... yet you would like to capture moments of these scenes. So far, the RX100 has done an excellent job!
More cool pictures of my Sony RX100