Amazingly capable & creative compact camera
Pros:
"Wide" in every way; flexible use of sensor and aspect ratios; Leica lens is fantastic.
Cons:
Noisy images at full resolution; not for large hands; less-common Micro-USB connector.
The Bottom Line:
Overall image quality doesn't win the prize here, but the unprecedented level of control and widescreen features in a compact blow away the field.
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Overall Rating:
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Author's Review
I needed a replacement for my dying Canon PowerShot S230 Digital Elph. Priorities were an excellent lens, 28mm or better wide angle, small enough to fit in a pocket, respectable resolution (8mp or better), and some at least some degree of manual control. I didn't need another SLR, but the flexibility of my wife's Canon EOS 5D meant a basic point-and-shoot simply wouldn't do.
The Panasonic Lumix DMC-LX2 nailed my requirements on everything but size. The body is actually more compact than it tends to look in most pictures, but that lens housing makes it awkward in anything but the most bulky pocket... and even then, people are likely to ask, "Is that an LX2 in your pocket, or are you just happy to see me?"
I can't even ding it on size that much, because for the quality of the Leica lens it's an acceptable compromise. It's not bad industrial design; on the contrary, it's probably the smallest it could be with a lens like that.
I'd read up and was aware of the noise (and noise-reduction) problems at higher ISOs, but the way I plan to use it I don't anticipate that will be a problem. At the same time, the noise is why I can't give the camera five stars. Also, the flash almost seems like a "why bother" afterthought. It's miniscule, dwarfed even by the small pop-up housing that springs it into place.
The worst part of the entire package is the manual, rife with vague disclaimers on all the ways your pictures might look lousy or things you might think are a malfunction but aren't. It's almost comical. More than half of page 46, for example, is indirect, oh-by-the-way commentary that could easily and more clearly be integrated into the main instructions for the relevant feature. It's as if Panasonic Tech Support got a shot at the manual and just threw every issue that has ever generated a call or e-mail into it.
But that's okay. This isn't a camera for beginners or casual point-and-shooters (though it can be used casually to probably very good results), and photo enthusiasts may find the manual so bad it's actually entertaining.
I do find that the noise reduction is a bit too aggressive, leading to the notorious watercolor effect, so I'll generally keep this at its lowest setting and shoot at the highest ISO possible.
The only downside to the widescreen display is that it takes up so much of the back of the camera that there's very little room to actually hold the camera. Further, the control buttons are very small. I'm just comfortable with them, but am glad my fingertips aren't a millimeter larger.