But i dont want to comprmise on the image quality of my friends or family.
I don't understand, any compact that fits in a pocket is going to be a compromise on quality.
Fuji X100, Olympus E-P3 with a Panasonic 20mm and Olympus 12mm, Pentax Q, Nikon J1, Fuji X10, Ricoh GR series, Sony Nex... There are plenty of good camera out there.