It really depends on what you want to shoot and where you want to view your pictures, as others have said here. If the photos are for facebook, it really doesn't matter what camera you use. I have some nice photos from early versions of the Panasonic you are looking at before I got bit by the dslr bug. The problem is I can't increase their size much, and they don't print very well (where size and the number of pixels can make a huge difference)--I am talking posters here. They look fine in Shutterfly type photo books.

That being said, as others have pointed out, there are a variety of cameras to choose from. If you really want something that fits in your pocket, my preference has been for the cameras in the Sony Rx100 series, but they are expensive. The original model though is cheaper. This camera does really fit in a pocket, and the quality of the pictures is excellent. I am really liking the rx100 vi with its longer lens, but it is quite expensive.

If pocketability isn't a major concern, my favorite is the Sony RX10 series. I haven't tried the version IV yet, but I liked the III a lot and found the image quality outstanding.

A lot of people I know have switched to Olympus or Panasonic m4/3 cameras and lenses. They are worth considering also.

Finally, my phone now can take photos that I find comparable to some of these less expensive, less than 1" sensor cameras. There is a limit to how much you can blow photos up with the phone pics, but I think the quality is good enough now that it would dissuade me from buying anything with less quality than an RX100 at this point. Also, really seriously think about what you might want to imagine for your photos. I loaned a camera to a friend of mine who used it on a safari. She never really used it because it was easier to use her phone. Then she wanted to blow up these wonderful animal photos she had to put on her wall--it couldn't be done, as the pictures got to pixelated too quickly (this was a few years ago, the phone cameras are much better now).

These, of course, are just my thoughts. Everyone has their favorites and in the end, while you can collect opinions here, you need to come to your own conclusions about what will work for you.