like you, i was also in dilemma of deciding which one to go for,,, XZ-1 or S95 ?...and i firstly bought XZ-1...before XZ-1 i used to have sony nex-3 however i was really dissappointed by it's lack of sharpness and focus speed/accuracy..for these reason i sold sony and bought XZ-1. i've been using XZ-1 for 6 months and i couldnt imagine how i could be happy with XZ-1...much sharper photos, much faster AF, almost never missed AF, extremely bright lens doesn require flash or higher iso in most cases....
yes i'm extremely happy with XZ-1, however, a stupid feeling never felt me since i bought my xz-1, which is how S95 would be?
last week, i bought s95 and was shooting with both cams.I've not done studio comparison like testings...i just took both cams with me and in daylight i tried to shoot with same settings like iso/aperture/focal lenght...
1.) In day light,
a) If what you're shooting is very well lightened, i mean if there's no shadow on the object, both cams reveals same details.Very minor differences you can observe.In some shots, XZ-1 shows more detail, in other shots S95 but difference can be seen if you're pixel peeping with great attention.Generally S95 reveals more detail in expense of showing more noise .(noise can be seen easily with s95 base iso shots)
b) for some reason ( i think, because of lens coating) when you use same iso/aperture/focal lenght, eV comp. XZ-1 chooses much faster shutter speeds in some shots.For example XZ-1 shots at 1/1600 while canon choses 1/1250 .
2.) If what you are shooting has some shadows and bright areas, XZ-1 photos have much less shadows and more details in shadowed areas while s95 photos show remarkably more shadows.Difference is obvious that it's seems like you're shooting different photos/scenes.
3.) Bokeh....bokeh of XZ-1 is clearly better and it really gives you DSLR taste. In s95 shots, background is less isolated from focus point.With S95 ,none of my full telephoto portrait shots gave me feeling/joy of any of my other same type photos taken with xz-1 .This was a BIG DEAL BREAKER for s95.
4.) In door shots. You have no chance to use zoom in s95...aperture falls down hugely comparing to XZ-1 which results with much slower shutter speeds.
LONG STORY SHORT,
YOU CAN NOT TAKE THESE SHOTS WITH S95 . BELIVE ME.
now i love my XZ-1 more than EVER!
this was shot through a thick store glass !