I bought the Panasonic Lumix FT1 for its waterproof capabilities, but now after 1 year of over-use in the sea the waterproofing has been eaten away by salt in some areas and I am now scared to use it underwater again.

Now that I can't use it underwater, I am a little dissapointed by the image quality, especially at night, and wonder if it is worth upgrading to another compact camera? I have been looking into the Sony HX5 or the Panasonic TZ10, but the question I want to ask is, is the image quality really that different? I am going travelling in July for a couple of months, and don't want to feel like I am missing out on good shots. Would it be worth spending 250eur or so on another compact?