Travel cameras are a hard balance to strike between size/weight, usability/features, and image quality. Think micro 4/3 is probably the optimum balance available right now.
The premium compacts such as Panasonic LX, Canon G12 are limited by their sensor noise. The Ricoh GXR is a serious contender.
I think the Nikon 1 has missed the mark. It has potential but is really a point and shoot rather than a photographic tool. It seems like a digital version of the Pentax 110. Now if they put that 1" sensor and technology in a handy bridge camera with a wideangle zoom lens, it could make a great all round useful tool.