There's been a huge step in minaturization in cameras recently, and buyers are spoilt for choice.
My hiking camera is a Fuji F30, and it's 6 excellent megapixels is all I need. YMMV.
If I had to replace it now, I'd look at the Fuji X10 on spec, as there are no images out yet.
It seems to strike the best balance between lens speed, sensor size, and file size of the small cameras in the class below m43.