Well the G-series has always been considered an 'advanced' P&S model - it's still a P&S, but has a slightly larger sensor than many of the compact pocket models, and typically has more manual controls. ; The G9 is pretty old tech by today's standards - you're going all the way back to 2007, which is like a millenia in technology terms...the G-series went all the way up to the G16, and even was replaced about 2 years ago by the G1X...which moved up to a MUCH larger sensor about the size of that used in entry-level DSLRs. ; And of course, in the years since the G9 debuted, the entire category of 'mirrorless interchangeable lens' cameras debuted, with dozens of models released since then - all with significantly larger sensors and much better capabilities, PLUS the ability to use different lenses as needed. ; And all in a footprint around the same as the G9's size (though bigger when you put bigger lenses on them). ; The difference in the G9 sensor to a normal P&S sensor is like the difference between an iPod and an iPod classic and an iPod nano...there's a difference, but they're both small. ; Whereas the sensor used in the Mirrorless cameras and DSLRs would be like an iPad next to those sensors - many many times larger.
Moreover, there's yet another category of camera that has popped up since the G9 - the new 1" sensor - much larger than P&S cameras and the G9 sensor, but still less than 1/2 the size of the DSLR sensors. ; The newest RX100 Mk II and RX10 from Sony have this sensor in a fixed lens form, and Nikon's Series 1 has this sensor with interchangeable lenses. ; This also might be a good compromise if you want to stick with smaller form factors and fixed lenses, but want a better sensor and better image quality.
I'd definitely strongly consider a look at the mirrorless interchangeable lens camera options - from the slightly smaller sensor of the M4:3 cameras from Olympus and Panasonic, to the DSLR-sized sensors of the Sony E-mount and Samsung NX cameras...or Canon's EOS-M cameras which don't have much of a lens selection. ; The entry-level Sony Emount cameras and the Canon EOS-M can be found dirt-cheap - brand new cameras in the $300 range WITH a lens included...so quite reasonable. ; Or if you really like the G-series cams, consider the G1X or newer G1X II cameras, with much larger sensors than the older G9-16 cameras.