As ever, "it depends..."
If you're just after a pocketable, good quality camera that will cover the majority of snaps, then I would recommend a Fuji F47fd (available for around £100).
However, it doesn't have the biggest zoom around - so if that is truly crucial then the Panasonic you are looking at should fit the bill.
Lastly, if you want as much control as possible then either a G series Canon or possible even the Ricoh GR are worth investigating - but these are aimed at the Enthusiast market so have far more control available.
Cheers,
James