I've had the Lumix LX3 for nearly a year now and am quite impressed with the image quality and the overall camera capability and performance. I considered the 4/3 stuff, but for me, i'd not invest a constant stream of money in a system of camera and who knows how many accessories (lenses and whatever else appears) on a technology that while it will grow, will always stay a step behind DSLR systems. Sure, it's about the upgrade process, but my feeling is i dont want to upgrade down that path.
part of that is budget related. im not in a position to invest money in two different, but very close in terms of image quality, technology paths at the same time. part of that is also self-justification post-purchase of the panasonic camera.
i think the review on this site nails it pretty well. i actually had not read it before purchasing and using the camera for a few months. a big selling point was how fast the lens is. so i decided to use this camera while budgeting for going straight to digital medium format. i really dont feel like i need anything in between the two. as background, i have never owned a DSLR.
and the proof's in the pudding. the attached is a completely unedited, but cropped for composition, jpeg done in the camera, taken in fully automatic mode. i can easily take the companion raw file, fiddle and enlarge to 17x24ish. i've been printing mostly at 13x19. there's a little bit of fixing required in the blue sky here, but nothing a little luminance smoothing wont fix in Camera Raw. at 8x10 or smaller, or sharing via the web, this is not necessary.