I've been using the Leica D-Lux 4 periodically. I have two other digital cameras that I use, a Sony NEX 5 and a Nikon D90. No question that the latter two cameras have bigger sensors and produce lovely shots. The Leica has its own character though, and I'm still drawn to it, even with its smaller sensor. The lens produces sharp photos and I find the files to be better than many smaller point & shoot cameras I've owned; especially Canon cameras. I did love the Canon G9 camera for it's ergonomics, but the files looked terrible past ISO 400. This Leica camera may not be the most enjoyable to use due to the frustrating Lens Cap issue, but I love the camera due to the files it produces. They just look nice, even with a smaller sensor. The noise is noticeable past ISO 800, but I've gotten useable files from ISO 1600; something I could never do with the three Canon p&s cameras I've owned. (Canon SD800, Canon G9, Canon S95). I think Canon has a crappy noise engine. The S95 is better than the other two I've owned, the G9 was a joy to use, though a brick, and the SD800 was pocketable and had an OV on it. (Something we don't see too much of these days as camera manufacturers skimp to save money.)
The Leica is a solid camera, the most solid built I've used. I wish Leica changed the lens cap design with their new D-Lux 5. It was kind of a bummer when I found out the same annoying cap would be on it. It's a shame. I've owned a few Leica cameras and this one has the most fun factor though, even with the smaller sensor. Once Leica gets the X-1 firmware update out to the public, then the Nikon D90 and the Sony NEX 5 will have competition. I'm hoping they improve the AF and maybe ISO on that camera. I may buy one if they do that. I'll still keep a little D-Lux around though.
You can keep track of my Ozzy project HERE on Flickr or HERE on ZENDOG Blog. I alos have the first 365 days of this project on 365Project Website.