This camera can take razor sharp superb images, proving your ISO setting is either 80 or 100. Use anything higher than that and you will get digital noise (grainy images). For its class, getting digital noise at ISO settings above 200 is expected, but getting significant digital noise at 200 is disappointing.
Most of the time, I take pictures during daylight and outside, so a lower ISO setting is fine.
If you use auto settings and the pre-programmed modes, then generally the camera tries to keep the ISO setting as low as possible. This may result in blurry images in low light as the shutter speed will slow down, but otherwise, you will see very good results with this camera.
The 12x zoom is great and the ability to add a tele converter lens to this camera is useful. The focus at the long end of the zoom is excellent - much better than other camera's in this class. The camera also takes fantastic close ups using the super macro option.
This camera is fast to react. The zoom is very fast, but once you get used to it, easy to control. The menus are good.
I also like the fact that it does have the manual settings, such as aperture priority and shutter priority.
I found I had to up the brightness on the electronic view finder as it's difficult to see. In bright light, it's still quite difficult, especially if you, like me, wear glasses - the answer is to take your glasses off - but that is quite inconvenient.
Overall, the digital noise is the main thing that disappoints me with this camera. Other cameras in this class don't have digital noise at ISO 200 (the Panasonic Lumix, for example). Some of them even have noise reduction software (Sony DSC H5).
The other slight disappointment is that there is no option to have RAW images on this camera.