UPS picked it up today.. here is a segment from my website describing why I finally made the decision to return it...
Update: January 31, 2012 - I'm Returning My X10
I really hate to do it but I must. Here's why.....
In the last week I have taken a number of shots in which the X10 just did not render specular highlights properly. It was annoying enough to make me reconsider keeping this camera. I gave it a lot of thought and decided that I must be able to trust the camera I am using to render a scene properly. The X10, while capable in so many ways, falls short where the specular highlights are concerned.
I communicated with the camera store from which I bought my X10 and explained the issues and the lack of a fix from Fuji. They agreed to give me a refund. So, the X10 is back in its original packaging and was picked up by UPS today to be returned. I'll hang on to the flash I bought as it may work on the X Pro 1 should I buy it. If not, I'll sell it online along with the lens hood and adapter.
As you can see by the photos I have taken with the Fuji X10 it is capable of delivering some great photos but I have found myself in the awkward situation of owning a camera I cannot fully trust to render highlights properly, and that just does not work for me. I had hoped that Fuji would have a fix by now but that is not the case and so, it goes back for a refund.
It is truly a shame that the X10 has this issue as otherwise it would be a truly great compact camera. Fuji clearly shot themselves in the foot with this one. The issue has been known for some time now and Fuji has made very little in the way of a response to the problem, much less a firmware update to lessen or eliminate the problem. Proper testing of the X10 should have caught the problem before the camera went into production. I have to assume the X10 was either not fully tested or that Fuji felt it was not that big an issue.