I have been waiting a lifetime for this camera and it was worth the wait! It provides excellent quality shots in the smallest possible sized body. I am a point-and-shoot user who has been disappointed with the photo quality that comes from even expensive point-and-shoot cameras but who has never bought a DSLR because I knew I would never want to lug one around. If this describes you, then this is your perfect camera. Or, if you own a DSLR and use 5% or less of the features on your camera, this is also the camera for you. On the other hand, if you're a skilled DSLR user, skip this camera because you'll be frustrated the compromises that make this camera a smart choice for the average consumer.
Why is this camera "perfect" if you're a typical or even advanced point-and-shoot user?
COMPARED WITH POINT-AND-SHOOTS, you'll immediately see the following improvements:
Low light/indoor shots are dramatically better
Quicker shutter response time
Ability to do continuous shooting at 7 frames per second and other DSLR-like features
Great HD video
COMPARED WITH DSLRs, you get:
A much smaller camera than a DSLR that you can actually carry around on a regular basis
As good or better HD video because of the advanced auto-focus technology in the Sony Alpha Nex which does a better job of continuous auto-focus than the average DSLR
Photo quality that is comparable to a DSLR for the average user (again, if you're an advanced DSLR user, skip this camera)
An easier-to-use camera that was designed to make the most important features very accessible with the advanced features tucked away in the menus. The advanced features are there if you need them but if you're more likely to set the camera on the auto setting, you won't need the advanced stuff much and will appreciate how straight-forward the camera is to use.
COMPARED WITH OTHER WANNABE PERFECT CAMERAS, you'll be glad you waited for the Sony Alpha Nex because it's:
Smaller in size than the other options
Has better photo performance due to the larger APS-C sensor (12X the size of a typical point-and-shoot and also significantly larger than the competitive Micro Four Thirds sensor)
Has better video performance
Is similar or cheaper in price
Other wannabe "perfect cameras" I've considered and almost purchased have all been "Micro Four-Thirds" cameras, which owned this category of cameras before the arrival of the Sony Alpha Nex.
Panasonic Lumix GF1: Panasonic Lumix DMC-GF1 12.1MP Micro Four-Thirds Interchangeable Lens Digital Camera with 14-45mm Lens
Olympus PEN E-PL1: Olympus PEN E-PL1 12.3MP Live MOS Micro Four Thirds Interchangeable Lens Digital Camera with 14-42mm f/3.5-5.6 Zuiko Digital Zoom Lens (Black)
And I am glad I waited. The Sony Alpha Nex has better photo and video performance than both, a smaller form factor than both and is cheaper than the Panasonic (though slightly more expensive than the Olympus which cut its price when the Sony was announced).
As for the Nex-3 vs Nex-5, if you care about the dollars involved in the price difference, then you should get the Nex-3. Three key differences are not really worth the added cost if you're looking to maximize value: (1) the typical user will not see a noticeable difference between the higher 1080i video resolution in the Nex-5 vs the 720p resolution in the Nex-3 (and I have a hard time believing that home movies can even benefit from the higher resolution). (2) The Nex-5 has a metal body vs plastic for the Nex-3 which is an aesthetic nice-to-have but not a need-to-have. (3) The Nex-5 is marginally smaller in two of the three dimensions (0.2 inch and 0.1 inch). Because of the overall size of the camera with its lens, shaving a little off of the height and width just won't make a practical difference. Spend your savings on stuff that will actually impact how you use the camera like a spare battery or a larger memory card.
Other things to note:
The flash is small and detachable, and it's different than almost any other camera you're considering. PRO: you don't need it often because of the great low-light performance and you get a more compact camera as a result. CON: there's a part you can lose or forget to bring with you if you really need it.
If you're looking to own multiple lenses, there aren't many available lenses directly compatible with the camera and they're expensive compared to competing lines. But for the advanced point-and-shoot user, you don't need multiple lenses; just the 18-55mm or if you splurge, the 18-200mm when it comes out (expected fall 2010). But if you have the 18-200mm, the even larger lens starts to erode the benefit of the small body.
While this is very compact compared to a DSLR, it's not really going to fit in a pocket (though it will fit into a purse). The lens still juts out like on a DSLR so it won't be portable like an ultra-compact point-and-shoot. But for high quality shots, there isn't a smaller camera than this one.
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