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Why I bought it? I think secretly I wanted a Leica M8, notwithstanding all the issues of that particular Leica model. They do other small "rangefinder" style cameras though and Panasonic do a cheaper version. One in particular was new out and the reviews were very positive: the DMC-LX3.
Why I sold it? Whilst it was tiny and very pocketable, the controls were fiddley. Also, the lens glass was small meaning and the max focal length was the equivalent of 60mm. Great for landscapes and wide shots, but not great if you wanted to do portraits. That said, the quality of the images was immense and the one key requirement before I bought was satisfied: it shot raw. This went hand in hand with buying my first MacBook, allowing me to tweak my photos in the excellent Adobe Lightroom 2.