Hi,
I have been in the market for a camera like the X1 for some time now. I don't know if it will be the X1, but that camera sure looks interesting. Here are my thoughts about Leica and the role of the X1. Let me start off with saying that I already told my wife about it and announced that I would probably start saving. She thought it was okay. I'm blessed with a lovely and understanding wife. (Possibly, talking about the S2 and the M9 first helped a bit :ROTFL
The idea of Oscar Barnack was to make a camera that one could take anywhere and that would always be ready when needed. Quite probably, the X1 has a better form factor for that as a digital camera than the M series itself. I've extensively used an Olympus OM system which is nearly identical in size and after several years, I didn't find it really practical anymore: you need a shoulder sling like Seal was wearing during the presentation and a small bag to carry extra lenses. The Leica M possibly moved a little bit away from the ultra portability of the earlier Leicas, trading that in for a lot of advantages (like the viewfinder). For me, I'd prefer a camera that is more pocketable again, and I know it will mean compromising on other things.
The X1, as has been noted here before, shows quite a bit of resemblance to the Barnacks. The lens isn't removable, but it does retract to make the camera very pocketable. I use my Barnack (clone) with a collapsible Summitar and the X1 will be smaller, less than half the weight and I won't need to carry a light meter. Even better, it has exactly the same dimensions as my beloved carry-everywhere camera (Minolta TC-1), except it's 2cm longer, leaving more place for holding it. When I used the TC-1, I actually thought a bit longer wouldn't hurt, so it seems to be quite perfectly proportioned for my purposes.
The fixed lens is then the main compromise: digital cameras are just a lot harder to design than film ones, so Leica had the choice here: either it would be a fixed lens camera, or it would be a new system, bigger and a lot more pricey, but then it would compete with the newly introduced M9. If it's true that the sensor is the one from the D300 and the lens is a typical Leica gem and the whole implementation is good, then it has the potential to be an incredible pocketable and it will be extremely hard for anybody to come close. Definitely, if all of those "ifs" are achieved, $2K is not very expensive.
I think the controls are a bit funny, though. Another poster mentioned the flash, saying it is a kowtow to the P&S crowd. I don't think so. The design by itself looks great. The main issue is whether it will have some decent flash control. My TC-1 allowed me to balance flash & ambient just by selecting the aperture (if I was close to the subject, I'd close it down). If the X1 allows me to do this in a simple way, it could be quite useful as a fill-in flash, which would be great news. I'm a bit more curious about the position of the aperture dial: it could be either very good, or very bad. If it's in the way of my index finger when reaching over it to make a photo, it's very bad. But if it's not and it's very reachable with my thumb, it makes the camera very easy to use in aperture priority, which is my preferred mode of shooting. That would be very good.
Final little thing is the screen. If I need an external OVF, the camera won't be half as pocketable. I hope the screen is really good. Possibly, Leica can still stick in a 900K pixel one before they release it and make it flare resistant. We'll just have to wait and see.
Having seen the webcast yesterday, I have a pretty good feeling about Leica's strategy. They have carefully thought about their recent past and decided that rebranding wasn't the way to continue. Instead, they put some pride back into their work and designed three cameras that are quite awe inspiring. I am not an economist and I can't say if it'll make them survive the next 10 years, but if Leica has calculated their profit margins carefully and if the cameras get the rave reviews that I hope they will do, we could have a very fascinating reborn Leica entering the market.
Peter.