[gfhoward]

OK I'm starting to get serious about my next studio camera. I prefer advanced compacts to SLR's because 1) I can frame using the LCD instead of squinting into a viewfinder and 2) They come with built-in macro mode. How much quality am I losing by choosing an advanced compact over an SLR? Looking on dpreview, it looks like image quality is the same. Only main difference I really see is that an SLR has a bigger image sensor (what does that mean/do, and is it important?) and with an SLR you can still get good shots over 200 ISO (up to 1,600 ISO)--again, why does this matter and should I care? Does the ability to shoot at a higher ISO give me better pictures in lower light?

The two I've been eyeing are the Digilux and the Lumix. Any thoughts on these or what might be better? How useful is wide-angle lens for knife pics?