Verdict

The Panasonic DMC-L10 kit is a very capable package albeit a comparatively expensive one on paper. The high quality Leica 14-50mm f/3.8-5.6 is certainly the star here which lifts the camera beyond the ordinary in this class and it's also putting the price point into perspective. Panasonic does not follow the recent trend of implementing a build-in image stabilizer. The four-thirds system is somewhat torn in this respect because Olympus does so you can either choose between conventional Olympus/Sigma lenses or a few Mega OIS lenses offered by Panasonic - a less than optimal situation here. The dark and small viewfinder of the Panasonic is another weakness especially for spectacle wearers. However, the Live-View features convinces in all aspects - it's still one of the best implementations out there.
Basically the Panasonic DMC-L10 is suitable for all ranges of photography but you can find better alternatives if your focus is on portrait-, night- and/or sports photography. Similar to its Olympus counterparts the L10 is more suitable for nature/outdoor photography due to its extremely high pixel-to-pixel sharpness. It's also especially attractive for light-weight travel photography when combined with the Leica 14-150mm f/3.5-5-6 OIS (if your wallet is deep enough ...).

(*) see the corresponding comments in the technical analysis to put this into context.