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I have owned the Olympus EP-1, Panasonic GF1, also have a Nikon d90 and canon s90 so I have seen a lot of pictures from all these cameras. First I would like to say the MENU on the NEX is actually pretty GOOD. Yes, like everybody has said it would have been nice to have a dedicated button for iso, w balance etc..BUT it takes literally 1 second and you can change those settings, what's all the fuss about??? I actually find the Nex's menu LESS complicated than the EP1 that drove ME nuts! So..to all afraid of this camera because so many reviews mention the menu is horrible..to them I say what???
What is blowing me away most is the low noise at high iso plus the overall picture quality. I am one of those DSLR people who wants DSLR type quality in the smallest package possible. I admit I am NOT a pro photographer but I can change every setting on my D90 and I know how to go deep into DSLR settings and what they mean. I say this ONLY because the Nex-5 seems aimed at point and shooters moving up the quality ladder but supposedly don't know all that much about settings. Yes, the Panasonic GF1 and Olympus E-P1 seem to give you a "little more" manual control than this NEX-5 does..but it's pretty close..re: controls.
What the NEX-5 does in my opinion is especially in raw format Blow the doors off the GF1 and EP1 as to how much detail you can work with. On the GF1 in raw..often I STILL couldn't get skin tones to look right, shadows in lower light always had too much noise..and I ended up with too many grainy pictures. I am simply blown away with the NEX as to how much detail you can get back using raw...where the jpg may look like a total loss..you can often still get a great pic using raw.
For the point and shoot people..the raw conversion software that comes with the Sony is actually VERY good, powerful and EASY to use. Overall this is a SMALL camera that pretty much takes pictures in the same general ballpark as the better dslrs in my opinion. I think this may actually have less noise than my Nikon d90.
What I don't like..manually you can only choose iso 200, 400, 800, 1600 etc. I prefer a bit more control ala the GF1 where you can choose say a 640, 1000, iso or 1200 iso etc. That being said if you choose Auto iso the NEX Will at times choose isos such as 640, 1000 etc..not available manually.
Some of the gimmicks? like panorama or twilight handheld shooting where the NEX shoots about 5 pictures within about a second actually WORK and I think at times "these can give you pictures you simply can NOT get on a gf1, ep1" etc.
One other thing I am not thrilled about is overall color saturation is bit too punchy or high. This is not a problem as it takes a sec IF you want a bit less color saturation in your pics with any photo editor.
The NEX feels great in your hand. It feels solid as a brick YET seems to weigh much less than the gf1 and ep1 making the Nex easier to take with you!
There is no perfect camera and never will be. In my opinion though..if you don't need to change settings every 2 seconds..OVERALL this NEX-5 may be your best choice right now as far as mirrorless cameras go. Don't forget one huge reason the GF1/EP1 look so much better than point and shoot cams is the sensor size. Well the full sized dslr sensor in the NEX is MUCH bigger than micro Four..hence the lower noise...better overall IQ in my opinion.
UPDATE: The menu system never really bothered me, however, after updating to latest version 03 this Nex-5 is even WAY WAY better. The menu system now is downright EXCELLENT in my opinion. I am constantly blown away by how great this LITTLE camera is. What a WONDERFUL camera overall!!!
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