This is all you need in a camera and more! A huge, smooth, almost stepless 2-speed zoom, sharp results in optimal shooting conditions, Good, natural colour and excellent exposure, Effective image stabilization, Fast (and accurate) focus, Bright, clear, high resolution LCD screen, and excellent EVF. Physically, the camera is good build quality in a nice compact package. With a comprehensive range of controls & fast operation, Well designed menu system, and Lots of in-camera image adjustments, it's exceptionally nice to handle. It has a powerful flash, Good movie mode (16:9, VGA, 30fps), usable raw mode (approx 4 second shot-to-shot with a fast card), and a powerful raw converter. Excellent optical zoom (can be extended even further optically by reducing resolution down from 8 to 5 or 3 megapixels), and the long battery life is very handy.
For travelling and holidays I have found this camera invaluable. It's so light and easy to take around, you never miss a photo opportunity. It takes such great photos, sharp, clear, and bright, and far higher quality than you'd expect from such a small bit of kit! There is very little red-eye syndrome, and it performs well in most lighting conditions. There are even plenty of functions to be able to custom set-up the camera to the way i want it (without the necessary complexity of dSLR's).
On the downside, there is no facility for electronic remote / cable release, lens performance can drop off slightly at long end of zoom range, and there can be some loss of fine detail to noise reduction even at ISO 100. All in all though, I'd say this camera performs exceptionally well for such a small bit of equiptment. It's great value for money and I am well satisfied with it.