Summary: This camera is supposedly very popular in Japan but not so much here due to the cost, and reviews that compare the cost to the benefit. Those reviews are no longer valid now that the price of the camera has dropped by so much (below $250 with lens). This is not a DSLR and the smaller sensor won't provide the same quality shots. It is small--tiny actually--and will provide great screen shots and very good to excellent quality for anything smaller than an 8 x 10.
Pros: -Good value now that the price dropped by 2/3., -Both the 02 and 06 zoom lenses are sharp, surprisingly so., -Small., -Amazing telephoto capabilities with the 5.6 crop ratio.
Cons: -Bokeh. The sensor is so small that unless you are very close most of the photo will be sharp., -The in-camera blur option is OK, but doesn't substitute for creamy bokeh., -No viewfinder. Using the screen makes it tough to focus a manual lens (if using one) in daylight., -The fish-eye is more of a "toy" lens.