[ronster]

The Sony is an excellent choice for a small camera as it uses an APS-C sensor the same size sensor as most DSLR's that are not full frame. The larger sensor will give you a much broader dynamic range that will show more detail overall and especially in highlight and shadow areas where detail is generally lost due to the small sensors not having enough surface area to record them. The Leicas you mention are pretty much the top of the line for P&S cameras, I gave up my SLR and a Leica M8 to go with the Panasonic LX3 and now LX5 as both of them recorded as much detail as I needed for the size prints I'm doing and it is a much easier camera to carry around. The Panasonic is pretty much the same camera as the Leica (Panasonic makes both) at much less money. You can't go wrong with either choice.