The title speaks for itself:  This proves to me that Panasonic has not done any really relevant and ground-breaking research in developing this camera (and others in the same category) because their imaging sensor is horrendeous.  The photos are full of colourful specks of noise and are very smudgy and blurry, even at ISOs as low as 400!  At 800, 1600 they are a disaster!  The exposure of videos is poor and overall, low light performance is also very poor.  I took a photo of my livingroom under tungster/halogen lighting which came out OK but again with much noise.  Then I made a video of the same room right afterwards under the same lighting conditions and the video was too dark.  This camera also has no exposure compensation for videos.  I read the manual and it clearly indicates that videos are strictly in automatic mode with no exposure control at all by the photographer.  You are at the mercy of the camera.  The Canon PowerShot SX220/230 HS DOES have exposure compensation for videos FYI...The only good thing is that the videos are smooth because of a fast 60fps (interlaced i - not progressive p though).  And having a GPS is just a gimmick and a toy to fool consumers, and does not make the picture quality of this camera any more "attractive" or in any way better.Having a Leica lens is not enough because a good digital camera also needs a good image sensor.  The actual sharpness and noise level in the image is determined largely by the sensor.  One can have the best lens in the world and have a poor sensor and the resulting photos and videos will be horrible.  This camera is not worth it!  For the same price ($449) wait for the Sony Cybershot HX100V - it is outstanding based on reviews on the internet. 

Question: How is the image quality like?
Answer: The photos are full of colourful specks of noise and are very smudgy and blurry