I've recently bought that very model after realising that the camera on my current smartphone (Samsung Galaxy S3) isn't as much of a camera replacement as my previous phone (Nokia N8). It's a great little camera - I took it to the RAF museum in Hendon, and got some great shots without flash in the relatively dark bomber hall.
The only caveats are practicality: the battery is small, so doesn't last a vast amount of time (around 200 photos). Spares are easily available and not that expensive - I paid £13 for a Hahnel from CPC, and £25 for an Innovision from a shop on Tottenham Court Road (you can get cheaper off
eBay but I'd be concerned about the quality of cheap Li-ion batteries) - but they don't charge in-camera, so you'll have to find space for the charger if you need to carry that around - I have seen USB chargers, but only on eBay from China. Also, the memory is a microSD card, not a standard sized SD card like other cameras. This only causes issues if you want to put the card straight into a computer - you'll most likely need an adapter. Or, like me, connect the camera via USB, which will use the camera battery. But these are minor concerns, and are certainly not showstoppers.
Also, that camera's an older model, so is on clearance - you might find it hard to get hold of.