This is coming out in October, but is a pretty big update. A reason to wait before buying a LX-3, I think. "Popphoto":http://forums.dpreview.com/forums/read.asp?forum=1010&message=29122707 had the notice. The previous "G9":http://www.dpreview.com/reviews/canong9/ did get very good reviews (it is 12MP vs. the 15MP in the new G10)
* 14.7 megapixels (wow!)
* 28-140mm 5x zoom
* 3 inch LCD
* RAW support
The biggest advantage of the Lumix, I think is the F/2.0 and F/2.8 lense. That means it will work better in available light. But hard to know with only a press release. The big tradeoff for this speed is the lense is only 24-60mm so it is pretty short.
"Canon PowerShot G9":http://www.dpreview.com/reviews/canong9/ review which shows it is actually smaller than the LX3 and people who use it say it feels great. Definitely not an ultracompact, you can stuff it in your purse though. One nice thing is that you can actually use your professional flash on the thing. It has a standard Canon hotshoe. It does have a 0.75x wide convertor to get your from 35mm to 26mm equivalent.
* 12MP on 1/1.7" or 15mm wide
* F/2.8-4.8 lense
* Shoots RAW at 1 per second and 1.5/second for JPEG
* Shots are great to ISO 200 with ISO 400 usable