Not waterproof, but compact and amazingly capable, the Sony RX100 and RX100 II are the darlings of current compact cameras. DSLR functions in your pocket with a big sensor, decent fast lens, great high ISO output, RAW files and reasonable controls. My only gripe is they would be fantastic if they had dedicated aperture and shutter speed controls in all modes. For most activities our micro 4/3s kits stay home unless we need a really long lens or extreme wide angle. They the perfect cycling cameras but you will have to baggie them if carried in a jersey pocket. The II will accept an electronic viewfinder and is compact enough to shoot range finder style with both eyes open. Highly recommended.

Edit: I just read post number eight and realized I sold all the micro 4/3 gear a couple of years ago. The wife and I replace them with a pair Sony Nex 5ns. Those are the cameras that stay home, not micro 4/3s. Why is this important? Scroll down to Post number nine.