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Most of these I don't see as advantages (the OP might though), but while the S120 is a good little compact;
- A touch screen has always been a no no on a camera for me, while it has its uses, I always accidentally change things with my nose!
The RX100 is in a different league to all other compacts IMO.
In general I agree the larger the sensor especially if the elements are not too jammed will always be a winner. But it is the totality of the "package" that counts, it is not?
As for the touch screen, I have found it useful and some of the setup settings suggestions above I have yet to try.
But as for ones nose touching the screen, well as there is no optical viewfinder on the S120 if your nose touches it the user must be doing something very strange with it