£150 ish compact for the wife.

[sk1n]

I would like to buy a sub £150 compact for wife's birthday next month, I've had a good look on here and talk photo and see lots of recommendations for the Fuji xf1.
Although its a good couple of years old now is it still the compact of choice around that price?
Or has something newer taken the Fuji's place
Most of her pictures are of the kids both indoors and occasionally outside.

Thanks for looking.

 

[sk1n]

WB350F looks decent for the money, nice toys with the wifi/nfc/gps.

Am i correct in saying that the larger the sensor the better when it comes to cameras.
I presume the larger sensor will help with collecting light for those indoor lower level light shots?