Try before you buy! XS-1 over FZ200

I don't believe for a second that a low-end compact would deliver IQ any better than that of an iPhone 4S or 5 (both same sensor).  Actually I think that it would be inferior in many instances.

Now if we're aiming at very special, shallow DOF portrait, then of course this can't be done because of optics and geometry.  But as for the rest...

I own a D7k DSLR and some good glass and frankly I just so much prefer the ease of my iPhone which is always with me anyway.  And when I urge for some portraits of the kids I put the 85mm f1.4, leave it fairly wide open say f1.8, put the camera in AF-C, and shoot away!

For all the rest, my iPhone is just great and it's IQ is fine for most uses apart from, of course, poster-size printing.