After reading this, I have decided to not go for canon and get the lumix lz2. Its size is between the a610 and sd400. But it beats them badly when it comes to the zoom options. The only significant difference between the canons and the lumix is that the canons have a lot better video capture mode which I dont care too much about.
good luck with your purchase. let us know how you like the Lumix. The way I see it, image stabilization/anti-shake is going to be the wave of the future. I wouldn't consider one of these compact digicams without this feature! I am just waiting for Canon to incorporate IS into an Elph-size form factor. Canon's image quality + image stabilization = Winner!
also: consider that this particular Lumix does NOT use a true Leica lens. You would have to buy one of Panasonic's pricier models (LX1 or the FZ-XX series) to get it. Still it's gotten great reviews, Leica or not.