John, the LX-3 will blow you away for such a tiny package! Raw images are the way to go, of course, and up to A4 (the largest I can print) it holds it's own against a 10mp DSLR such as my Samsung GX-10 until you rack up the ISO. Sure the lens range is a bit limited, but the quality from that Leica lens is terrific. My only gripe is that Panasonic don't have a clip-on v/f that shows the wide end full view, with a patch in the middle at the tele end, so I use a Voigtlander 24mm finder. Like most compacts, the screen can be hard to see in bright sunlight - time for the LX-5 and viewfinder?? Get thee hence Temptation!
Happy shooting
Ray