Here's my real-world tests of the "highly anticipated" LX3 -vs- the TZ5. The reason for the TZ5 is Panasonic's comparison of the 1/1.63 sensor to the 1/2.33 sensor used in the TZ5, and my feeling that it's a more logical comparison than the LX3 to a large-sensor camera.
The 'Test01' images were shot in a direction generally toward the sun, and show the TZ5's main weakness (noise) under less than ideal lighting (for small sensors, that is).
With the 'Test02' images OTOH, shot with sun behind the cameras, the LX3's pixel smearing is about the same as the TZ5's, and no doubt a *lot* worse than any large-sensor camera.
All images were at ISO 100, approx. 28 mm equivalent zoom, auto (Program mode) settings. Apertures were 4+ and shutter speeds were approx. 1/500 to 1/600, IS set to Mode 1 (always on). The LX3's pics were sharpened slightly to look about the same as the TZ5's .