Panasonic’s Lumix DMC-L1 represents their top-of-the-line camera, and happens to be the only offering in its DSLR "line" so far. It comes with an extraordinary lens that is very well-built and includes a measure of Leica cache. The DMC-L1 comes equipped with a Leica D Vario-Elmarit lens that features the industry’s first optical image stabilization system–MEGA O.I.S–designed specifically for the digital camera. The DMC-L1 also incorporates a Live MOS image sensor that conforms to the Four Thirds standard and offers 7.5 megapixels to ensure outstanding picture quality. The new camera introduces a full-time Live View function that, using a signal output directly from the Live MOS sensor, lets users see on the LCD screen the same image seen by the sensor. With full-time Live View and the DMC-L1’s large LCD screen, users can compose shots in new ways and with greater ease and accuracy.

DigitalCameraResourcePage has had a chance to play with the new Lumix DMC-L1 and has this to report in their review-

"The Lumix DMC-L1 — Panasonic’s first digital SLR — combines modern technology and classic rangefinder styling into an impressive (but not class leading) package. It has very good photo quality (especially if you shoot in RAW mode), live viewing on its LCD display, generally snappy performance, plenty of manual controls, and the best kit lens on the market. The L1 isn’t without its flaws, though. Its bulky body is an ergonomic nightmare (in my opinion), the viewfinder is small and dark, noise levels at high ISOs are above average, and its vastly overpriced. A good camera, yes. A good value, no.

While Panasonic is going for the classic rangefinder look and feel with the L1, it felt more like a brick in my hands. Its heavy, difficult to hold, and absolutely covered in buttons, switches, and dials. Some of these are poorly placed, liked the drive and metering switches and the shutter release button. The shutter speed dial is clever, but you still end up using the four-way controller to adjust the shutter speed sometimes, since the whole range cannot fit on the dial. The Leica kit lens is a work of art, with good sharpness across the frame, and built-in optical image stabilization. It is — by far — the best kit lens out there, and I’m sure it’s mostly why the camera costs so much. I liked the L1’s unique pop-up flash, which can point upward for a "bounce" effect. The camera has a large 2.5" LCD that is typical of digital SLRs these days, though it doesn’t tilt like on its sister camera, the E-330."