With a digital zoom of only 4 times zoom factor, the DMC-XS1 has a fairly small digital zoom compared to most of the other cameras of this age and type. The average digital zoom of medium megapixel cameras that were released more than two years ago is 6.6x, and the digital zooms range from 1x to 120x.
There are a number of alternative 4x digital zoom cameras currently available which you might want to consider including the Nikon L120, the Canon ELPH 115 IS, or the Olympus VR-340 (£75.99) which all of have better reviews.
If you are looking for a bigger digital zoom then you might want to look at the WB250 (5x and higher rated), or the 150F (5x and higher rated) both from Samsung or the Panasonic Lumix DMC-FZ72 (£242.99) (5x and higher rated).
What does "digital zoom" mean?