Originally Posted by Mathew
....As regards panorama, is it possible to stitch the pictures unless the camera has the provision to take shots for that purpose? ...
Do some reading at Panoguide and other panoramic sites. It is possible
to make a panorama with any camera, but life will be much easier with manual settings. Like low-light usability, that is a feature you are not likely to find on a very compact camera.
I think your nephew is going to have to make some choices - compact vs. lots of features. And that is just the beginning - photography is full of trade-offs: shutter speed vs depth of field, High ISO vs low noise/grain, ....
There Ain't No Such Thing As A Free Lunch.