I went with my gut...I read some negative reviews from the "techie" world, but also listened when people were putting the camera to use in the real world. No camera (in this price range) is going to do EVERYTHING you want it to do. My big things were it needed to be waterproof and withstand lots of outdoor use. Of course, I wanted something that took great pictures, too.
My biggest beef with this camera is that it doesn't take the best (or the worst) pics at low light. On some settings, there is a lag time in the readiness for the next photo. There is also a way around that. On a different setting, you can hold your finger on the shutter release button and the camera just takes pic after pic after pic. I have managed to get some awesome shots that way. Perfect for taking pics of very active dogs.
Photo quality... This camera does not take the same quality photos of the Nikon I will one day get. I just didn't want to lug a big camera around, with lots of parts. For the camera that it is - YES. I am more than satisfied with the pics this camera takes. Like I said, I just avoid the low-light situations. Even then, adjusting settings can get ya around that.
I do have to admit I was a tad worried about scratches on the 3" screen. I opted to use a screen protector and still (after almost exactly a year) have no scratches on my screen. That is even with having lived in a tent (Baja) for 3 months.
Not everyone will love this camera, but it has exceeded my expectations on many occasions. I would buy this camera again. This camera has survived much abuse!