Mark, we bought a Lumix DMC ZS5 last spring. We had narrowed it down to a Nikon or Cannon DSLR entry model when we left here last fall. We figured sale prices would drop them to a can't resist. But everytime we looked we never could get over the size and weight, plus the need for no less than 2 lenses.
Our picture taking basically are snap shots of people, or scenery, so we started looking around and found the Lumix. It fits neatly in my pocket, yet has a 12 times zoom, plus another 4 times digital, giving you over a 55 to 200 lens. To this point, we are very satisfied with our choice, and to our initiated eyes, they are equal to those taken by our kids one has a Nikon and the other a Cannon DSLRs.
However, I'm sure those photography buff on the forum will tell you otherwise. And remember, I only scored in the mid thirties on Tom's colour test, so I don't have the greatest matching abilities.
Ed