is the picture quality of the GF3, if we used it as a glorified P&S camera, going to better than the regular compact and as near as dammit up to a basic DSLR like my old A200 when used on Auto for example?
Short answer: yes, especially when shooting indoor candids of a toddler with a 20mm f1.7 lens, for example.
Just want something pocketable (nearly) which is getting to DSLR (way above compact) quality really. Have a newborn on the way in a few months so would like something which can shoot quick too.
Longer answer (and off topic here in the Pany section): I think you'd be better served with something like a Sony NEX-5N:
http://www.cameralabs.com/reviews/Sony_ ... ndex.shtml
Better IQ, better high ISO, faster burst, still "pocketable (nearly)" with the 16mm f2.8 lens, and you can use your current A-mount lens(es) with an adapter.