I've also got the panasonic version, which I keep in my briefcase.
The truth is, having a tiny little 10-mp camera with somewhat reasonable manual controls (now why can't they make one with two dials? Are two dials too much to ask for? Two dials? ? ) is awesome.
I also picked up a 5" tripod for $20.
Shooting with the noise, and the limitations, are an amazing way to help me forget about IQ and focus on composition, style, art, and the theme.
I find that when I am shooting with it, I think about what the whole picture is saying, more so that with my SLR and full rig , where sometimes I get so busy with IQ and thinking about how my 17" X 21" print will look that I am not spending enough time on composition. . .
That's what's out there in the small form factor, and I for one am so glad that it's there, as this lets me go out in the evenings on business trips, and shoot, and let's me shoot sunsets out of the plane, and candids on the street, etc.. Can you imagine carrying your 25-lb big-bag full kit + tripod on a business trip? Not me. Done it - too hard.
Don't laugh, but I even shoot handheld multi-row panoramas with this little gem! And they stitch, and they work!
IF 50% of the shot is being there, this gets you there.
Now I would love to see:
* full ergonomics for manual control with speed (2-dials?)
* changeable lenses from a respected line with some availability (rangefinder?)
* -OR- a decent zoom
* don't really care about sensor size or MP other than say the 6+ MP range
* RAW
* fast metering and focus
* a sub $1000 price
This panasonic is not that far away - IMHO if it had better ergonomics it would already be close to my ideal.
* a small form factor