Most of my photography is landscapes, some macro, occasionally people. It usually doesn't go much farther than a hard drive or the net, but every once-in-a-while I get a keeper that I like to have printed, usually not larger than 8x10.
I like the aperature control, spot focus, and wide angle offered in these models.
I'm stuck between the longer telephoto on the FX500 (125 vs 60) and the supposedly better image quality on the LX3 ("less noise"). The RAW option on the LX3 may be of benefit, but I currently don't do much Photoshop. The minor weight difference doesn't matter to me.