Great little camera.
I've owned this camera for about three months and use it pretty much everyday. I can hold it in one hand, and it's very portable. No, you won't be able to put it in your jeans pocket, shirt pocket, or even the top pocket of slacks, but it will easily sit comfortably in a cargo pocket (pants or shorts) and a coat pocket. Finding a case for it is easy as there are tons it will fit in.
The Good: Image quality can be just as good as anything Canon sells (APS-C, of course). If you're aiming at a sunset, a flower, a building, a person posing, etc. then you'll get great photos. Color, contrast, sharpness: It's all there.
If you shoot something that moves, well, then that's a different story. Stick with even a basic DSLR to capture fast motion (sports, little kids, pets, etc.). If you're shooting action that is predictable (a batter, skateboarding, etc.) in which your camera doesn't have to move, then you can use your shutter speed to stop motion (provided you have already set up where you want the focus to be). So, yes, sports are possible...but don't move the camera.
My only real complaint is that I'd like more control over the touch screen in terms of disabling some features. I actually want to set the center point for focus and leave it there, but I don't think that's possible. So each time I take a picture I have to be careful not to touch the screen in the wrong place and shift the focal point.
Other than that, it's a wonderful little camera. It's only a replacement for a DSLR if you are absolutely sure you won't need to capture motion. If you do macro, portraits, landscapes, etc., then you really can get by with just this camera. But really think it through before selling your DSLR.
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