LX3 successor, the DMC-LX5, and so far they all seem to echo similar sentiment. The form factor hearkens back to its Micro Four Thirds darling GF1, at least from the top, with "dinky buttons" (in CNET UK's words) on the back reminding you of its point-and-shoot bloodline. The pictures are solid if not characteristically warm -- and the ability to simultaneously produce RAW and JPEG files is a nice touch -- as is the choice of either Motion JPEG or AVCHD Lite video. The universal issue with this camera is the price; that £449.99 tag (the equivalent of $691 in US currency) doesn't quite seem to match the offerings, especially when it's about on par with entry-level DSLRs with interchangeable lenses (albeit without the slim look). As PhotographyBLOG puts it, Panny's gotta hard case to make for a camera "that looks, at first glance to be very similar to a £299 model." Hey, a hardware switch for changing the aspect ratio (just above lens barrel; 4:3, 3:2, 16:9, or 1:1) doesn't come cheap. Much more detail can be found in the reviews below.
Note: It's worth mentioning that this camera can be had for $500 at Amazon right now. Still pricey, but not $700 pricey.
Read - PhotographyBLOG
Read - CNET UK
Read - Pocket-lint
Read - Trusted Reviews