They note "softness", (over)compensated by in-camera processing. Since my current camera is a low-level Canon, and I am not that happy with sharpnes, that review spooked me.

I did get my Panasonic LZ5. I like it much better than Fuji. The optical stabilization actually works, the macro mode is better. I do have to agree that focus aid lamp works much better in Fuji - Pnansonic sometimes can't focus in low light.

More impressions on Panasonic as I get to play with it more.