LX5 still seems the best choice..............

............after looking at length at TL500, the XZ-1, and the s100 I am going with the LX5. Of course the others are all good but the LX5 checks most of my boxes.

I gave a long hard look at the new E-PM1 but the lenses are not exactly small either and the kit lenses are all slow. I'd have to buy a pancake and this gets me right back to a system camera that I left 2 yrs ago and vowed not to go back to. again.
Yup, the LX5 is pretty much the best compromise.

And B&h has it for $349 at the moment.