Panasonic Lumix DMC-LX3 vs Panasonic Lumix DMC-ZS3 / DMC-TZ7 – Paul Schubert, who was trying to choose one of the two compact cameras, which will then be used "… primarily for family shots (two young kids)", says:
While I was very keen on the LX3 for its larger sensor and faster lens, in the end I opted for the TZ7/ZS3 because I just couldn't tolerate the tiny zoom on the LX3. I guess you can crop/digital zoom the LX3, but if you're going to be doing a lot of zooming then you may as well go for the dedicated zoom lens. I've found I've been using the full range of the zoom more than I expected, so I'm glad with my decision in that regard. I do find some of the features of the ZS3 a bit gimmicky and unnecessary, and I still lament the small CCD sensor, but I think the camera strikes a reasonable balance as a jack of all trades compact.