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I have just received the Panasonic Lumix DMC-TZ7 for review. It's possibly the most advanced compact camera yet. Let's list its tricks:
[LIST][*]25-300mm (equivalent) 12x zoom[*]12 megapixel multi aspect ratio CCD sensor[*]Face detection AF[*]Face recognition AF[*]Subject tracking AF[*]Intelligent Auto mode[*]Scene recognition mode[*]720p HD video recording with video optimised AF and zoom control[*]Dolby Digital Stereo sound recording[*]Dual core Venus Engine HD image processing engine[*]3 inch 460,000 dot LCD display[*]Small enough to fit into a shirt pocket (just!)[/LIST]I look at this camera and think to myself, are DSLRs falling behind compacts in terms of camera design evolution?

There is no doubt in my mind that compact cameras have evolved more than SLRs during the digital era, and I think the TZ7 is evidence of that.

Am I talking nonsense? Or do DSLR manufacturers have a real challenge on their hands? Remember, DSLR sales only account for 7% of the market.