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The LX3, despite being a minor tad bit slower glass, has Leica branded front glass, and takes a lot better pictures.
I'm not sure if they improved the GRD3 that much, but the raw write speed was abysmal (we're talking several seconds between shots) and it was subject to some pretty bad noise. I am generally a fan of prime lenses, but this one was not super-fantastic.
What it definitely DID have going for it though were some really nice controls, better than most cameras I have used. It would be nice if they fixed the raw speed and low light performance, though I think they would be hard pressed to deal with the LX3 (slightly larger sensor) and who knows how the EP-1 is going to hold up.
Seriously though, the LX3 is quite good.