Like wideboy says, don't use the digital zoom. Stick to optical! Digital zoom expands the image in the same way that photo editing software does so you lose quality. Better to zoom in to the max. optical zoom and any further adjustments, make them on the computer afterwards.
As for the cameras, I can't compare them but my mum did buy the Panasonic camera a couple of weeks ago and is very happy with it! The automatic mode isn't so good so it seems to be geared towards people who know about cameras to make the most of it's more advanced features but all-in-all it's a very good camera!!!