It is easy to defend a camera one doesn't have to work with.
The detail smear in RAW images has been very well documented by members of the dpreview forums.
The problem of the LX-2 is, that it could have been a much better camera, but the marketing people seemed to demand performance numbers they could advertise in the Megapixel wra. They obviously could not figure out a more creative way to advertise the camera.
The improvement over the LX-1 is - you mentioned it - the beautiful widescreen display, but not the image quality.
8 MP was actually already too much for that tiny sensor. I would have liked to see a bigger sensor, and less noise.
After all, noise shows up with this camera at the lowest ISO setting.
The LX-2 looks like the perfect example for a camera that could have been not only good, but great, but was spoiled by the overpowering sales people.
PS: A very good friend of mine has the Leica version of the LX-2, and he loves it. It is a great little toy, and definitely a lot of fun to use. But it could have become more than just a toy.