@Roland Karlsson;

Can you show us a OLY camera with sensor larger than M43?

Or a OLY P&S with micro size sensor has less MP than Oly and/or Pana M43?

Same goes to FUJI too, the bigger the sensor the less the MP.

In terns of your definition of High end, a Oly body + three PRO line zooms cause you $4K USD. If a $4K USD system is not HIGH END M43 for you, buy Hasselblad. It's worth every penny.

OK - so high end and low end was only regarding Oly?

Could not even guess that I assume.

OK - then I do not know - maybe Oly has fewer pixels the bigger the sensor is. Have never checked.

Same goes to Canon and Pana's P&S too:

Canon: the last Cannon G1X-MK2 has sensor size larger than M43, but ONLY 13MP when all micro size sensors' P&S Canon have greater number of MP if not double.

Pana: LX100 has 12MP, LX7 is 10MP, but all Pana's micro size sensors' P&S has greater number of MP too.

Some people (myself included) simply don't like the ergonomics of taking photos on a phone. Plus that is quite a zoom! Horses for courses.

Then get the leica version of the lx100.
problem solved.

Really?
Do you own SH-1?
2 stops is a lots, will be a better camera than ZS50 if true

Not sure about ZS50, but Panasonic's hybrid 5-axis image stabilization can give you almost 4 stops in the past.

Again, we are not sure about ZS50's IS performance, so does this OLY.

BTW: The newer OLY M43 OMD-EM5-2 is about 5 stops on paper while OMD-EM5 is about 4 stops.

600mm (equiv) would require a tripod thereby defeating the usefulness of "pocket"
Millimeter wars is the new megapixel wars.

A long zoom with 5-Axis IBIS and 1080p video can be pretty handy for travel and family events (I wouldn't pay $400 for one though, I use a cheap old Sony HX20V.)

Where is the phone with the 600 mm built in zoom lens? I'll wait. :D

Franz....its the same, from what I've read on another review.

It can not be the same system.
With a ibis system the sensor is moving to cancel out shake.
The em-1 sensor is 8-9 times larger then the one found here.

So it may be moving in a similar way it's just NOT the same thing.

Exact words from photographybay..."The 5-axis image stabilization is adopted from the OM-D E-M1 system, which should make it a pretty solid performer even on the long end of the zoom."
http://www.photographybay.com/2015/03/11/olympus-announces-stylus-sh-2-retro-styled-compact-camera/

I agree, this camera would be much more attractive with an EVF

Like the panasonic zs50?

The LF1's lens isn't great despite the Leica name.

The Olympus XZ10 had a much better lens.

Probably a great camera, but I was rferring to the looks of it, the black leather is just not fitting for this camera in my opinion. And fyi: Any camera can deliver photos that are not blurry 99% of the time, it is called using manual mode not auto.

I see your point. I own the black SH-1 and the black leather fits perfectly with the rest of it. Maybe this lighter version doesn't look as good. For the non blurry images, I was refering to the 5 axis image stabilisation which is really awesome. Not many cameras can take pictures hand held at 1/5th of a second with the lens zoomed in. Not sure that 99% of the cameras can do that. This compensates plenty for the somehow slow lens.

To misolo,
I agree with you.
Other than beefing up the pixel count and the focal length, the ONLY ap on this camera is the 5 axis image stabilization. I own an Oly T2, and I'm happy for the quality and the price (300$, brand new, 2 years ago) But this new one has the same sensor size and screen dots count, whereas I think, for this 400$ tag, a 1/1.7" sensor with a higher number of screen dots would have been welcome....After 2 years of hard market thinking & development, uh?
By the way, the T2 is weather protected & sealed.

My E-30 and lenses tend to get heavy sometimes and I would love a pocket camera. I been reading up on the SH-2 and was ready to pre-buy but the sensor size has be unsure. I would not mind the zoom cut down and the sensor a little larger. A cross between the LX100 and the SH-2 would get my dollars.

You're completely missing the point of this camera. This is a super compact camera that you can fit in your pocket, not a premium compact with a big sensor and a viewfinder at double the price. There are plenty of more expensive options for what you request.

@Hubertus Bigend

"the tiny 1/2.33" sensor, a sensor size that has produced not a single camera with descent image quality yet."

Please don't tell me you're really that naive.

The little Canon 330hs does a nice job for a dirt cheap price. Decent 2.3 sensor and lens combo.

I like the concept of a brighter lens as in the TG series (have the TG-1). The whole series is hampered by the lack of RAW and high fixed NR.
I do not care if it is larger (I have the XZ-2 with PT-054 now, too), but 5 axis IBIS, a 24-120 lens and a XZ-2 / or X30 sized sensor would go down well, with inductive charging, wireless file transfer and built in 64 GB memory. This circumnavigates the necessity of ports and limits the danger of flooding.

misolo - check out the fuji s1

TSeiler -- wasn't aware of the S1, but that seems to be sealing like the usual weather-sealing in high-end DSLRs, not immersible water-proof. I'd want something rated to at least 10m depth (and, since we're on wish-lists, ideally with a lens that's fairly bright at 24mm equivalent...)

@misolo … There's the Nikon 1 AW1.

http://www.dpreview.com/products/nikon/slrs/nikon_aw1

(You don't get a 24mm equiv. focal length though – the 1 NIKKOR AW 10mm f/2.8 is 27mm equiv.)

Ocolon: I was very close to buying the AW1 for a lack of alternatives, but it's not really in the same category as the rugged compacts (too big, much more expensive, unlikely to be as robust given the interchangeable mount).

The AW1 would be perfect, if they would have produced a more interesting lens. The reason for the small sensor UW-camera is to have a nice zoom range AND a good macro capability.

ShatteredSky: Yes, it's odd that with a camera that would be perfect for snorkeling and such they didn't make a real wide angle (ideally an ultra-wide angle) nor a macro. If those lenses existed I'd buy it, in spite of the price and of my other reservations.

The thing is that Olympus is on the right track with the TG series, but somehow got stuck. The idea with the ring"light" accessory is a nice touch, but making the whole package somewhat larger would enable them to upgrade quite a few features (I assume). I even would not mind a lens that would permanently stick out.

Maybe a good compact with a separate waterproof housing would be a good option for you- more choices.

I'll probably get a diving housing at some point for my 5Diii plus ports for the 16-35/2.8 and the 100 macro, but would really like to also have something that's pocketable for kayaking, sailing, kids at beach, pool, etc. without too much compromise in image quality - it's hard to believe there isn't a market for something like that.

I already have a XZ-2 with PT-054 housing, and it is quite good.