Combatmedic870: Compare the LX7 vs the XZ-1.....The XZ-1 looks better in low iso and its almost draw in high iso(the XZ-1 has more color noise @ iso 800 and 1600, but retains more detail.) The LX7 output is VERY much so like the XZ-1(except in the low iso's and colors.(the oly is more punchy and saturated)) That is NOT a bad thing at all. The XZ-1's raw output is very very good(a little noisy, but very sharp).
ISO1600 does seem to be more useable vs the XZ-1 though, due to the lack of color noise. The use of iso 1600 and 1.4 would be some pretty low light.
So you can now shoot 1080p video...but since they had to switch to cmos sensors vs CCD. There is more noise in the lower iso's...Lens sharpness and speed is the only real gain(which is a REALLY good thing), unless your a video shooter
If you were just getting into buying a camera like this and wanted a wide angle shooter. This is going to be your best choice out of the bunch.
If my XZ-1 died, I would buy this. Very nice job Panny!
Funnily enough they added two things that fixed my only minor complaints about my XZ-1: they put a grip on the XZ-2 (XZ-1 was like a wet bar of soap and I dropped it onto a marble floor on several occasions) and put a tilt screen on it. Aside from those my XZ-1 has delivered images in all kinds of light that have stunned experienced users of DSLR's. I love it to bits.