This is my first Panasonic camera so I am coming to this completely objectively. People seem to be divided into two groups regarding the FZ50 (and by extension, most of Panasonic's recent digicams) - those who find it's image quality impressive despite it's limitations and enjoy it's superiority in most other areas and those who feel the FZ50 should have been a lot more than it is, lacking the output to back up it's DSLR stylings and not being a revolutionary upgrade over the FZ30. I stand somewhere in the middle but leaning more towards the first view.
The fact is, the FZ50 is a great bridge / mega zoom all-in-one digicam. The huge 12x focal range really is liberating and I just could not go back to a measly 3x zoom ever again. The superior quality of the Leica lens, which really is the main selling point is not to be underestimated - it's very sharp, producing next to no chromatic aberrations with truly effective stabilisation and I think is far superior to the lens of current competition. As everyone points out, to get this quality of (stabilised) lens over such a huge focal range for a DSLR would usually require more than one bulky lens and would probably cost over a £1000, so you can't really find anything to grumble about here.
I absolutely love the manual zoom and focus, which means you can fine tune to a degree that you just couldn't with a mechanical zoom - it's also silent and saves valuable battery power. I've found colour representation in the photos to be realistic although I must say that on every digital camera I've used, photos have never appeared quite how my eyes saw the original scene colour wise. I've found auto white balance to do a good job in most situations so far and this can also be fine tuned when in manual mode. The flash output can also be set to varying degrees, which is useful when you want to retain a more natural look in dimly lit conditions. The ergonomics as everyone points out are also great, the FZ50 feels comfortable and your hand position will feel natural around it.
The flexibility of the twist out and swivel LCD screen is also not to be underestimated, allowing more versatile shooting angles than a fixed screen would give you. I really wish the screen could have been bigger though - I'm sure Panasonic could have extended it to 2.5" as there is a border around the screen which could have possibly been used up with extra pixels. However, the screen is great. At 207K pixels, everything is nice and sharp and there is no ghosting unless in very dim light. I am a little confused though as even though the EVF has a higher resolution than the LCD screen at 235K pixels, it is very noticeably less detailed in both colour and sharpness - can anybody enlighten me by leaving a comment?
And so we come to image quality - the real bone of contention between the two camps. I have to say that I agree with a lot of those who complain about Panasonic's decision to up the pixel count from the FZ30 to 10mp whilst still using the same sized sensor, which is a fraction of the size of a DSLR. The (now infamous) Venus 3 engine covers the noise well but as others will point out, at the cost of smudging out fine detail. Unfortunately, when Panasonic in their FZ50 press release said that high ISO noise levels were much improved over the FZ30, they didn't quite mean they had made a breakthrough with sensor technology, they simply meant they had developed a better way to hide the noise!
Having said that, my photos have really impressed me with great clarity and colour and the main digicam review sites have pointed out that the image quality is above average in this anyway superior class of consumer digicam, and you can see this from their test shots. Also, if you go onto some of the Panasonic forums such as at www.dpreview.com you'll find some great examples of what can be achieved with the FZ50 and I'm sure you'll be really impressed. And at low ISO 100, some comparison tests show the FZ50 to give lower end DSLR's like the XT a good run for their money! But you do have to ask what is the point of putting in 10 megapixels if you have to print and view at sizes that a lower megapixel count would give you because when viewed at 100%, the effects of the heavy noise reduction can look pretty ugly. I would have much preferred a 6mp FZ50 if that would have resulted in less noise for the Venus 3 to work with. If I'm right in saying that a larger sensor would then result in a smaller focal range then Panasonic have probably tried to get the best from all angles and successfully so - however, Fuji have shown that great strides in sensor technology can be achieved.
To conclude, the FZ50 is a great advanced digicam and really impresses in all areas. It's a lot of fun to use because it's so comfortable and makes such a wide range of shots possible not to mention being extremely responsive and quick. The effects of the heavy noise reduction will only be an issue if you plan on viewing and printing large and using the high ISO's but otherwise image quality is great. For the advanced consumer who wants the best there is before the expense and bulk of a DSLR, then the FZ50 is the one to choose.