If you looked closely at the first pic you would see the following on the front of the lens:

LEICA DC VARIO-ELMARIT 1:2.8-5.0/5.8-17.4 ASPH.

Which should have been totally obvious to you that it has a 3x zoom. h:

5 megapixels.

But all megapixels are not created equal. The quality of the image depends just as much on the sharpness of the lens you're using as the image sensor. Yer typical pocket sized camera has a pretty crappy lens so adding more megapixels to it will only make so much of an improvement. Use a sharper lens though, and you can continue to make improvements with higher resolution. Leica has a reputation for making rather spiffy lenses, and the tests on dcresource.com seem to indicate that this camera has a pretty good amount of detail for its size (irregardless of megapixels).