The S120 is now only £186 in Jessops….
The problem with compact cameras is that they are a compromise over the DSLR. I mean, try taking long exposure shots of water and you can’t get it narrow enough. The shutter time lapse is annoying and auto focus points can be a pain. Obviously your lens is fixed, you got what you got. Can you get close enough with a compact for all you need?
The size is dead handy though, no problem to stick in a camelbak without too much risk of damage and will produce decent enough (biking) shots. But try taking low light shots of wildlife (for instance) and a compact won’t cut it.
Buy the S120 but keep your DSLR. At least until you’re sure you won’t need it.