Digital Camera differences?

I currently have the Nikon L120. I got it for christmas, but it is huge, i love the little cameras I can just put in my purse. I want a camera with amazing zoom, and I take pictures a lot and they seem to come out blurry. I was thinking of returning it for the Sony Cyber Shot DSC TX10. I love that its waterproof, and shockproof. Which one is a better camera Im trying to stick in the same price range as both of these but if theres another smaller camera which you know is better please tell me. Im going camera shopping tomorrow. I dont want to return it then regret it because I keep reading mixed reviews

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