Re R-10 versus S-2, if one considers it from the business side, I think the S2 makes a lot of good sense. Consider:
* The R-10 would have required a complete re-design of the lenses anyway, specifically for AF but also optically to extract the most from direct digital capture;
* The R-10 body would have a complete re-design for a unified digital body and the new lenses;
* So if you're re-designing your lenses and bodies anyway, why not think outside the box for a minute;
* Competing head-to head with the existing modular MF market is not particularly wise since they have entrenched markets that are tough to topple;
* Competing with Canon, Nikon and Sony is not particularly wise since they have entrenched markets and their pricing is going to be tough to match;
>>> Ergo, you probably look to build something hybridized... And what do you get? Probably a high-resolution, contemporary design body for convenient and familiar handling, unibody to keep size as small as possible and alignment issues optimally controlled, simple and elegant UI, and all this with the hopes of killer image quality. You then build killer lenses for it, an area where you have reigned superior for many years and have solid brand loyalty and recognition. (Let's face it, who'd be considering an S-2 body if it promised a new line of Panasonic lenses?) Moreover, if you do all of this properly, you won't have any need to re-design your "old" SLR system, saving tons of R&D coin.
Personally, I think Leica hit the nail on the head with this. Is it a gamble? Sure. But IMO it bests the gamble of going to head-to-haed with Phase and Hassy on modular backs, and eliminates any head-to-head with Nikon or Canon lest they chase you. IOW, it was a smart business move if you're a smaller company, late to the table and want to stay in the imaging business... In fact the ONLY big hurdle they need to clear is price justification. And if the camera delivers in Aces, then that isn't going to be an issue anyway as every single person that wants one will find a way to get it, even if it means waiting three years to buy used.
My .02 only,