Thanks to all who have given comments. Many of these brought up issues I had not thought of or was not aware of.
I just returned from handling the S3 IS, the H5, and the Panasonic FZ7. Let me start with a disclaimer. The difference between these cameras is not substantial enough to merit a clear choice based on specifications or camera layout. I could buy any one of them and be happy. It's time to choose and I'm about ready for a decision.
First, the FZ7. What a pity Panasonic decided to put such a noisy transducer behind such nice optics! All of the reviews talk about the noise in the Panasonic images. Apparently, it starts becoming a problem even at ISO 100. So, I just eliminated the camera based on that. I am making some archival pictures, and I don't want to have to post-process noise on all of them. Having said that, the little FZ7 is really sweet in the hands. It is significantly smaller than the S3 or the H5. The controls layout seemed convenient, and the setup menu seemed to be very logical. I found the viewfinder to be more than bright, although it actually blew out the highlights when viewing objects in the store. Likewise, the LCD screen seemed bright and very useable. However, I have large hands and I sometimes felt myself fumbling and missing buttons. Maybe the most compact camera is not the best for me. I would probably have chosen the F7 if it were not for the noise issue.
The S3. I liked everything about this camera except the controls. The salesperson and I struggled to find out how to display images, how to determine that the camera was telling us it was out of power, and what the various buttons on the back of the camera were for. Now, I am sure that if you are a previous Canon owner, you would know this. And, I am sure that after 2 hours with the manual, I would feel more comfortable. Still, some controls up on the barrel of the camera seemed way out of place, at least for me. The viewfinder was nice (bigger and nicer than the H5), and the image was bright. Handling of the camera was comfortable.
The H5. Well, some have dissed the large LCD, but I liked it. It was large and bright (at least in the store ... does it have a brightness control?? didn't notice). The viewfinder was probably the least prefered of the 3 cameras, but it seemed useable. I loved some aspects of the display, like how it displays the meaning of the selection of the main rotating knob on the top of the camera. I also felt comfortable with the menu display, probably because of my familiarity with the DSC 717. I didn't try the flash, but it is supposed to have a longer range than the other two cameras. A previous comment by one respondent that the S3 has superior resolution is just not borne out by head-to-head tests of the two cameras, although in-camera sharpening and consideration of edge resolution does make the comparison a bit more difficult. (i.e., I don't think resolution is a separator of these two cameras ... the Panasonic actually wins this game!).
I thought the swing-out LCD would be the deal-breaker for me with the S3. After I looked at it, I don't think it matters that much. I won't be using this camera for video except in an emergency, so I discount the advantages of the S3 in this area. Still the swing-out LCD was a real asset on the 717, but the S3's LCD is so small I am not sure I could do much focusing and composing with it, anyway. The longer battery life of the S3 is an advantage, admittedly.
Right now I am leaning toward the H5 based mainly on my comfort with the camera in the store (vrs. discomfort with the Canon), and the things mentioned above. I may change my mind based on the prices I get when I start shopping, but right now it is going to be the H5.
I also agree with others who have written in and said, "It is not about the camera, but about taking pictures!" I agree! Get a camera and take the time to learn to use it so it doesn't get in the way of the photography. I'm just a slightly obsessive-compulsive engineer who wants to make sure I don't buy a technical pig-in-a-poke spec!!
