As someone who has a high end DSR and quality glass I wanted a lightweight compact to throw in my pocket and take out when the DSLR was too large or inconvenient to carry. This fits almost all my needs. The lens produces good quality photos and the pixel size allows some decent enlargements. The only limitations are the same as you would find with all compacts - e.g limited apertures which stops the camera giving decent bokeh effects on portraits.
The camera is well specced and the user can make the same sort of choices as with a DSLR, aperture priority, shutter priority etc. The optical zoom is much better than most compacts and works particularly well giving none of the blockie effect normally associated with poor zoom ratio cameras which need digital zooming to get real close to the subject.
Battery life is disappointing and be warned the battery life indicator is not accurate and gives a highly optimistic reflection of what life really remains in the battery. My advice is buy a second battery but be careful to select one that is compatible because a lot of non panasonic batteries will not work with this camera.
My other reservation is that it is slightly too large to be a real slip in the pocket camera but on the plus side the size makes it feel it is solidly made .
Once last word of warning. The camera bag offer that comes with this case is a waste of time - the case is far to small to fit this camera. Shame on you Amazon the least you coul do would be to check that the case fits all cameras it is supplied with!