Conclusion 
The Canon PowerShot S3 IS, Panasonic Lumix DMC-FZ7, and the Sony Cyber-shot DSC-H5 are closely matched in terms of image quality and performance. Their lenses have identical focal length ranges and very similar apertures. Their dimensions are close, and they are equally portable. For their target market, snapshooters who want some extra capabilities, all of the cameras are acceptable. However, there are clearly areas where each excels. While a clear winner is tough to distinguish, the cameras do differ substantially, with each offering advantages in certain types of situations.

The obvious difference between the three cameras is price: the Panasonic Lumix FZ7 costs $100 less than the others. The FZ7's other big advantages - a lithium-ion rechargeable battery, rather than AA cells, and excellent image stabilization - are also important, and reinforce the choice. For hybrid functionality, the Canon PowerShot S3 IS is clearly the favorite. With more practical controls and a strong advantage in nearly every form of video and audio quality, the S3 is the only camera of the three that truly approaches a hybrid designation. While the Sony is not as economic or versatile as the Panasonic or Canon alternatives, the Cyber-shot H5 also offers some features unavailable on the other two: namely, a large LCD and nice viewfinder. With an additional megapixel and substantial decadence, we suspect the H5 will find its way into the hands of a significant number of ultra zoom consumers.