I am looking for a portable digital camera with the following specific requirements.

***Requirements***

 1. Must easily fit in a pants pocket.  The smaller the better.  *Maximum* size: 4.5" x 3" x 1.5" (smaller than that is better).
 1. Must have image quality and sharpness that is noticeably superior to typical point-and-shoot cameras.  I'm intentionally not stating it has to be a 1" or larger sensor because I am open to [all options][1]. I want to get DSLR quality images out of a small camera (I'm interested in the result, not bragging about sensor size.)
 1. Under $500 USD (on sale price is fine)

***Preferences (none required)***

 1. A nice zoom range.  I'm flexible on this, but more range (starting at a nice wide angle) is better.
 1. Optical view finder
 1. Water resistance or even waterproof
 1. Good battery life (at least 250 photos per charge)
 1. WiFi

***Not needed (okay if it has these features, but not needed)***

 1. GPS
 1. Image editing within the camera


  [1]: https://en.wikipedia.org/wiki/Image_sensor_format