I have the C-720 Zoom, pretty much the same camera, same lens, they just changed the geometry between models, mine has an 8x zoom. I hike and have taken many shots at full zoom. It works much better in daylight, dark or indoors shots at full zoom are difficult, the lens is just too slow for that.
Outside or under good indoor lighting, you can take full zoom shots. Inside, not so much. Otherwise the camera is excellent and I use it on every hike and ski trip. The big zoom is great for getting candid shots, scenery, and even wildlife.
Digital zoom is useless in a digital camera. Turn it off and never use it. You can do much better in an image editing program, all digital zoom does is throw away pixels.
Well, unless you use a tripod or have steady hands and excellent lighting, you’ll have trouble taking sharp pictures at 10X zoom with almost any camera. A long zoom really magnifies camera shake. Then again, it’s really nice to have that kind of zoom when you need it. Just make sure that you keep your shutter speed as high as possible and have the camera firmly supported.
If you’re really concerned about the zoom, look at the Olympus C-2100 Ultra Zoom. It has the same 10x zoom but with optical image stabilization. It’s also no longer being produced, but you can get around that.
Something else to consider is that 10x optical on a digi-camera is a much shorter lens than 10x on an SLR. On an SLR, it’s probably a foot-long 400 mm lens which adds a few pounds of weight. Most humans cannot hand hold it. OTOH the 10x lens on the C-730 is only 59 mm in reality, which would be no big deal on an SLR.