If you want to try and keep what you have, try to reload the firmware, or try another memory card. it sounds like it's just a firmware/card read error which may be fixable.
If you want to upgrade to something else, I would suggest anything with interchangeable lenses, either a DSLR or one of the many micro 4:3 options out there. That will give you the flexibility you're looking for, with great IQ and editing possibilities.
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