So, would you say that the rx100ii would be difficult to learn? I am torn between the two. RX100ii/S120. From what I've read the sony is the better camera, but it's just so much more expensive. Would I notice the difference without experience.
I was thinking initially about getting the s120 now and maybe the follow up to the SL1 next year, so I would have a smaller camera and a nicer camera. (Two cameras.)
But possibly the RX100ii, would be more than enough for me and I wouldn't have to buy another camera. Then it is actually less expensive.

To review what I want: a sharp, fast camera to take pictures of my kids, indoors and out, and small size is a bonus! I would love to be able to get bokeh, but realize that's not easy with a point & shoot.
I also would like great video. We are taking a trip to Disney World soon, but don't usually travel much.
Thank you so much for any help in making my decision!
The RX100 isn't that much more than the S120. The RX100M2 is much more expensive, but do you really need a tilting screen and wifi? The actual use and image quality of the RX100 and RX100M2 are virtually identical.
In terms of "learning" the camera -- Depends how much you want to get out of it. The RX100 is very very good in auto-mode. You will get more out of it though, it you take it off auto-mode and learn manual exposure. At a minimum, you should know about scene selections, how to use auto-HDR, etc. None of this is "hard" but it can take a little time. I'm sure the same is true about the S120 -- the more you learn, the better the results you will get.
In terms of following up with the SL1 -- as a "nicer" camera. dSLRs are not automatically and necessarily nicer. A dSLR generally comes down to the lenses you attach. While a budget dSLR with a budget lens will easily out-perform a budget compact camera, that isn't necessarily the case once you look at the better compact cameras. I dare say that under many circumstances, the Sony RX100 will outperform the SL1+kit lens. (Though the SL1 has the potential for better performance if you start upgrading lenses) .
DXOMark which objectively scores various parameters of image quality actually rates the image quality of the RX100 over the SL1. (just barely, you wouldn't tell the difference with the human eye). The SL1 gets a better low light rating (not surprising as it has a bigger sensor), but the RX100 scores significantly better in color and dynamic range.
I use the RX100 AND a dSLR, but it depends on what you are shooting. Plus, I have some high quality lenses for my dSLR. When I went to Horseshoe Bay in Bermuda, one of the most beautiful beaches in the world, I was totally happy just bringing the RX100 instead of lugging around a big camera.
untitled-248.jpg by
Havoc315, on Flickr
Horseshoe Bay Beach Bermuda by
Havoc315, on Flickr
So it's not a matter of a dSLR being a "better" camera.. but there are a couple advantages of a dSLR:
If you want narrow depth of field --- Background blur -- a dSLR is far better at achieving that. If you want to maintain fast focus of fast sports, a dSLR is typically better. And if you want to change lenses, you need a dSLR. But for landscape shooting, for candids, a really good compact like the RX100 can match a dSLR.
The RX100 is actually really phenomenal at video, though I rarely shoot video.
http://vimeo.com/45682834 is a good example of the potential.
As I said, bokeh and background blur -- that's where a dSLR (or larger mirrorless) is really superior to a compact. Though the bokeh with the RX100 will be better than the S120. I see the S120 does have a blur setting -- where I believe background blur is artificially added to the photo. I have no clue whether this works wonderfully, or is a useless gimmick.