I had a G6 which did produce RAW images and I was a little disappointed to know the G7 was only Jpeg however having seen the quality it can produce I am more than happy.

The: colour, chromatic aberration, sharpness, etc are superb.  The Jpeg is not compressed too much, the camera produces a 2Mb file on fine setting which I think is very acceptable.  The purists can argue all they like over the merits of wider colour gamuts and RAW processing  my opinion is this camera produces results you could only have achieved with a much more expensive semi pro camera just a few years ago making very nice A3 size prints.. 

For something that can fit in your pocket a remarkable achievement !

And every one said, 'If we only live,
We too will go to sea in a Sieve,---
To the hills of the Chankly Bore!'
Far and few, far and few, Are the lands where the Jumblies live;
Their heads are green, and their hands are blue, And they went to sea in a Sieve.

Edward Lear
http://www.nonsenselit.org/Lear/ns/jumblies.html