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IQ is a little better than most P&S, but not quite as good as the RX100. Really, really, really would LOVE to see a V3 come out with the RX100 20meg sensor in it. Not really much subject isolation from the kit 10-30mm zoom. The 30-110mm can get moderate isolation at the longer focal lengths. Its actually a pretty nice zoom and you can pick them up refurbished for $99 at Adorama.
The 18.5mm, f1.8 ($179) on the other hand can get some decent isolation, and its a 50mm equiv so its a nice general focal length. It would be a pretty good purchase for anyone buying a v1 as it really opens up the camera a bit in terms of lower light shooting and more DoF control. Again, its no "cream machine" but its better than a P&S, and a little better than a kit zoom on m4/3.
I showed the camera to a bunch of people during this past weekends Irish Fest and everyone (photographers and non photographers) seemed to love it. One police officer actually pulled out his iPhone and ordered one on the spot lol.
Everyone just said that its so easy to take pictures with and was amazed at the face detect AF. Its kind of the ultimate point and shoot camera, by literal definition.
The metering is just amazing as well, handling stuff like rapidly changing stage lighting during some musical performances and never missing a beat. Easily 3 to 1 times better keeper rate than my D3s in fact. Usually when the strobes and other lights are going, the metering can get easily fooled, but the V1 just nailed it shot after shot. Plus, being the main stage was pretty high up, and they had big monitor speakers at the foot of it, no one could really get decent shots of the performers but I could just hold the V1 over my head with the 6.7-13mm mounted and get the performers head to toe and the camera would always lock onto their faces.
These are pretty good from a $249 camera held over my head, with a f3.5-5.6 zoom lens IMHO
The dynamic range is surprisingly good for such a small sensor too, handling pretty harsh midday sun pretty well, which is something I usually never see in most small sensor cameras
And the metering does quite well even with some really bright parts of the frame, such as this white tent flap that was in full sun, while these guys where in the shade, of which my D3s totally was confused. V1 just locked onto their faces and I guess the metering must be linked to the AF points because it balanced this scene really well
Or another pretty tough exposure here
You can pull out a fair amount of highlight detail as well
Now certainly nothing really world beating here, RX1 has way more DR by a long shot, but for the size of sensor, and simplicity of shooting, its pretty impressive to me.
Equally fun and what your not going to find in the RX1, is the 30 and 60 fps settings, or the 400 fps movie footage. Was doing some baseball promo posters for the university yesterday and the ball and bat stuff we were getting with the v1 was a blast. I think any family with children would really love it for things like jumping into a pool, blowing out the candles on a cake, you name it.
If you've got Nikon F-mount glass as well you can get the FT-1 adapter and mount it to the V1, getting a 2.7x crop factor, and still having AF-S and AF-C tracking, plus VR (if the lens has it)
I put my 70-200 f2.8 VR onto it and it becomes a 540mm equiv, with f2.8 light gathering, excellent AF, and while only 200mm DoF, its still a lot better than any of those superzoom cam's, and is great for the zoo.
I think really anyone, serious photographer, or total amateur, would really enjoy the N1 system, provided your not looking for the utmost image quality or a lot of control over DoF (in which case I'd steer them toward the RX1) but the N1 system just plain works.
In closing, I'd got to share the site of the photographer, the very talented Joe Marquez, who has a great gallery of samples from the v1 that really show what it can do when used to its full potential. It is what swayed me to finally give one a try