Hey Ashwin, well I think that it boils down to 2 things, listed in order of importance.
1. There are more people actually 'using' the Nokton VS FLE cause most are constantly being traded for a profit ;-) I also believe the market that buys the Nokton are more likely serious shooters, compared to the more wealthy owners of the FLE (no I'm not trolling). Besides your photos Ashwin I'm yet to see anyone really utilize the FLE well. Right now I see that lens as a hot profit lens where it's value outweighs it's potential performance, and this is sad to see, as it's an incredible lens for it's size.
2. If you didn't like the size and handling of the V1, the V2 won't suffice. While it is noticeably smaller, it's not significant. They are still approximately the same dimensions and size. Compared to the Lux ASPH, the handling is wonderful, but again, really just like the previous version, but with a closer focus distance for guessing on the M, and more so designed for live view use on M4/3 and NEX cameras. Also at 0.5M wide open, the sharpness is relatively soft compared to being shot at 0.7M.
My advice to you Ashwin, as you're an owner of the FLE, go out and use it and forget about the Nokton. If I owned the FLE and cared about size (which is important) I would milk it for all it's got. While I think the Nokton still has the better signature, it's the picture that's more important. The photographer's input and creativity MUST supersede any possible differences between the two lenses. If only more of the photographic community would learn this point. This is also what separates the users on the Leica forum and this RFF forum.
These fast lenses are also often misused, with inappropriate use/over-use of the wide open aperture. I rarely see HCB or Magnum photos shot wide open, and for good reason. The best photographers shoot for content, not bokeh, and it's the content that makes a great picture, not the lens, or it's rendering and bokeh.
I have read through most of this thread, and have a couple of questions, other than marvelling at the beautiful photos of Kristian and company...
First, do most of you feel that this lens renders more or less like the v1? Images here seem to have a bit more contrast and pop (a bit more 3D), but it may be your wonderful post-processing at work.
Bokeh seems pleasing...Seems that there is a sharper fall off between focus and OOF...am I imagining this?
Size seems better...How does this lens, compare with regards to handling, to the 50 lux asph, to which its size was measured earlier? The biggest issue that i had with th prior v1 nokton after 2 tries was size...IQ was lovely, but the size got me, esp when I have more compact and lovely 35's in the bag...