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If you don't need the HiDef movie capture ability, you could probably go for its predecessor the TZ-4.
Its 8MP and also has the 10x optical zoom. I got one for a trip this year and found that the outdoor photos were fantastic. The indoor photos were okay. I found the flash a little in need of improving. Its too bad none of the camera makers can make a flash that will automatically adjust to to the zoom level that you're using.
The thing about these cameras is that the 10x zoom makes them a little big to be pocket size. I looked at Olympus's 10x camera which is slightly smaller but the menu structure was absolutely terrible.
hope this helps.
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