Here’s a couple of things to consider with the ZS3.

First, the color is not as good, particularly in skies where Panasonic cameras often show that as a sort of aqua color.

Second, the ZS3 has no internal adjustments for sharpening, contrast, or saturation – only a very few Panasonic models do have internal settings anymore. Canon models still retain this capability.

Third, the Canon IS (Image Stabilization) seems to be consistently better than Panasonic’s OIS (Optical Image Stabilizer) – that was certainly the case with the FZ28 Vs the S5IS.

Personally, I much prefer the Canon menus and controls.

The SX10 is the Family megazoom here, even Ma is using it instead of Pentax DSLRs, my brother uses it too on occasion (Sis in law has my old TZ5, I have a TX1) and IMO its the best Megazoom out there, beating the FZ28 on image quality though the FZ38 may be better again (but missing the build, swivelly screen and ergonomics of course).

The other camera that shares the limelight is the Canon Powershot SX10 IS, and the review states:

Both cameras are significant upgrades to successful and popular models in long established lines, both offer reliable point and shoot image quality as well as comprehensive manual controls and both offer fast, responsive handling and logical user interfaces.