hi there, i'm a bit of a noob here but i might be able to help you with some advice
i used an LC1 on 3 trips abroad in 2008 & found myself always going back & looking at the pics & thinking how good they all looked. since then i've been shooting an LX3 a Nikon D200 & a D2Xs yet i still had a yearning for an LC1 or Digilux2.
well 2 weeks ago i spotted a very nice, little used, boxed with all accessories etc example on ebay & stuck a bid in. i paid £510 which seems to be the going rate these days. since then i've not had a lot of opprtunity to get out & about with it but the few pics i've taken look pretty good. the B&W mode is excellent & like has been said before the lens is amazing
there are plenty of sample images on flickr-
Flickr: The Leica Digilux 2 Pool
plus there are some very good user sites also -
leica.overgaard.dk - Thorsten Overgaard's Leica Sites - Leica Digilux 2 sample photos and tests (as well as Panasonic DMC-LC1) - Page 1 of 3
plus John Thawley has written many interesting articles about using one in his journal
The Leica Digilux*2 - Journal - Motorsports Photography by Motorsports Photographer, John Thawley :: American Le Mans, Grand Am,
plus more links to digilux related items here
Search - Motorsports Photography by Motorsports Photographer, John Thawley :: American Le Mans, Grand Am,
also a massive thread discussing the "look" of the Digilux2 images on the L-camera forum. some nice ones on this page plus more as you scroll back through the topic
Do Digilux 2 photos have distinctive look? - Seite 63 - Leica User Forum
tbh i think you should have a good read up on its strengths & weaknesses buy it & try it (you wont ever loose money on it. at worse you'll break even) see how you get along with it. they have an almost iconic/cult status & i'm certainly not disappointed that i bought into it. yes the lower resolution might be a problem if you're doing very large prints but all full screen size preview on my 23inch cinema display they look great
as for the operational speed yeah for sure they're not as fast as a pro bodied DSLR but is any "serious compact"?
you just need to remember that these cameras are from an era where photography was about capturing light. nowadays everyone seems to want to be able to take pics of a moving subject, in the dark, with no flash!
go for it. you'll love it