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@EEI
Perhaps we're getting off topic now, but most people will document their cycling trips for the purpose of a blog or an online gallery. Overall quality isn't critical - a good sharp lens is more important than megapixels or noise.
Personally, I found Lumix GF-2 with a pancake lens on sale.
By the way, which handlebar mounted bag is the best for a camera?
I know that one of the waterproof Ortliebs has camera inserts as an extra accessory.