The LX3 is out of production and has been replaced by the LX5, a very worthy successor. Here's what we had to say about the LX3 before it was discontinued:
Meant for users looking for a high-end point-and-shoot or a supplement to their existing professsional SLR setup, the Panasonic LX3 emphasizes quality and power over everything else. Though it only has a very small 2.5x optical zoom, the LX3's image processing and design is tailored for advanced, high-quality shooting. It also comes with a 720p high-definition movie mode. This model is being replaced shortly by the soon-to-come LX5, so take a look at that before you pull the trigger on this one.