New camera - compact or full-body?

mambo

My camera for the last 4-5 years (Canon Ixus 70 compact camera) has died after too much exposure to water on a recent boat trip, so I need a new camera.

I'm divided about whether I should go for:

A) another small slim compact camera, with a slightly bigger screen hopefully, something I can easily slip into my pocket

a "fully-body" camera, with much better image quality (when I view photos on the web, even at low resolutions, it's easy to see which have been taken with a compact and which have been taken with a "proper" camera) - I don't need a full SLR necessarily, or lots of the more fancy features on the camera, just GOOD sharp image quality, good flash, etc.

Is there any good compromise, something reasonably compact which will produce better image quality than your regular compact camera?

Ghost Train

Maybe something like Canon g12
or sony hx5v

or something with large sensor, good lens but not slr
Olympus pen
Sony nex cameras
panasonic g1, g2
samsung nx
sigma dp1 dp2

dubhoop

sony h20. very good compact indeed. i have one and its brilliant heres a review
http://reviews.cnet.com/digital-cameras/sony-cyber-shot-dsc/4505-6501_7-33521241.html

CabanSail

Have a look in the FAQ Sticky and there is a section in there about selecting a new camera.

stunt_penguin

Another thing to look at is micro 4/3rds cameras from Olympus et al- imagine a sizeable compact with interchangeable lenses and you're onto the right idea. Olympus and Panasonic et al make them- check out the Panasonic G1 for more ideas.