If it's proper bottom end then get the cheapest widest compact you can and snap away. Anything else I'd outsource plenty of 'pro's' doing this for very little money as it is a highly competitive market. Avoid those who shop in blue skies and go HDR crazy as the results are hideous!
I never once felt in danger of being mugged in Vietnam and had a DSLR over my shoulder the whole time we were there and that wasn't on an escorted tour.
I'd take your best crop sensor body, a 15-85mm as walk about, a fast prime like the 23mm f2.8 pancake and possibly a short light weight...
It's better than any compact I've owned including the canon s110 that's now gathering dust as the wife just uses her phone. I think the image quality is staggering for a phone camera and more than good enough for most casual stuff, lack of zoom is a pain but for screen use and small prints...
Plenty of people also buy dslr's/mirrorless cameras never take them off auto and get better results than they would if they went with the average compact!
Personally I'd say unless your going high end compact you might as well stick with a smart phone the image quality in my other halfs iphone...
Wedding reception/indoor party and even with fast glass your very quickly going to need to add light. The built in flash as you found is always going to give you that nasty rabbit in the headlights look you need the real flash and a ceiling/wall! I've taken pictures at s few friends weddings...
Test it at an f-stop you actually use on a blue sky if you can't see anything it's clean enough obsessively cleaning it so f22 shots of white paper are spotless is a waste of life unless of course your normal shots are of s***e paper at f22!
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