And this is where everyone differs. I like my dSLR and my micro 4:3 mirrorless when I want something smaller. But honestly, lately I've been enjoying my iPhone. Just upgraded from the 3 (whose camera was marginal) to the 5 (whose is a lot better) and I like using it a lot. On Christmas Eve I was halfway down the street when I realized I forgot my dSLR. Almost turned around, but then decided to just use my phone. Very pleased with the results, and didn't have to mess with any gear or a camera bag whatsoever. If you like these, don't forget to check out the m4:3 flagship, the Olympus OMD, which was mentioned above. Yes, more expensive initially, but may be less in the long run.