I bought this camera about 4 months ago and have taken about 1500 pictures with it thus far. I've taken it on trips to DC, Philly, and London. It's been windsurfing (though it stayed safely on the beach), and cross country skiing (where it got to go along for the ride). I also use it for documenting projects around the house, and as the PR camera for my Toastmasters club.
The major technical cons with the unit are:
1) Noisy auto focus - the videos do in fact come out with a clicking sound in the background. In fact they have disabled the zoom feature during video+sound capture mode seemingly for this very reason.
2) Movie mode auto focus is less than optimal and frequently loses focus.
2) Sub-optimal lens - Unfortunately this lens falls far short, and on many occasions the chromatic aberration problems have shown up. It is most evident in shots where the light levels are greatly different between different parts of the shots. For example, in a shot of bare tree branches in the winter against a bright sky, the tree branches will show up purple. Other than the chromatic aberration problem, it appears to be a good lens, on 21st century standards (cheap plastic lenses with sub-optimal optical characteristics being the norm nowadays).
3) Lack of a remote shutter release capability - it is very annoying to be taking long exposures and having to use the 10 second timer function to keep the subject from blurring. Seriously, how do they possibly expect us to make use of the slow-speed synch function without one??? On a positive note, the long exposure shots came out beautifully using the timer.
4) Macro mode is largely unusable due to the difficulty of the auto focus of handling these subjects, and the difficulty of accurately focusing on a subject on a low resolution LCD screen. It has a 1:1 display function when you are using the manual focus mode, but even this is not really useable. Fortunately since it is a digital camera (and film is free!), I usually get the focus into the ballpark, then take a series of shots moving the camera through about 6 inches fore and aft of where I thought it was in focus. One of those shots usually turns out in focus and I can guiltlessly toss out the rest of the blurry mess.
5) The built in flash is utterly useless. At 15 feet in a poorly lit room it will take a picture, but they will likely turn out blurred due to long exposures, grainy due to the increased gain, and overall pretty poor. It does have a hot shoe mount, but see rant #1 for my experience with that.
6) The clear plastic back over the LCD does not appear to be replaceable. This also doesn't appear to be the case on any other camera available today, and it does appear to be made of lexan or something fairly resistant to scratching, but it is only a matter of time before it becomes unusable due to this design flaw.
I have a few rants with the system as well:
1) Apparently Minolta changed their hot shoe mount sometime between the mid 80s when my Minolta Alpha-7000 was purchased and now, and as a result none of my expensive digital flashes will work with the new camera.
2) People can't seem to figure out how to use it. I usually end up out of all pictures I take, which is disappointing because I usually bring this camera on vacations and trips.
3) Movie capture is in QuickTime only. Unless you're in the 1% of the population who can afford a Mac, the player for these movies is buggy and has an annoying popup ad every time it starts up. It does have a conversion program that comes with it so you can put it into a format you would be able to pass onto friends without being embarrassed.
4) The battery cover is pretty chinsy and I expect it to have duct tape on it before not too long.
On the pros for the unit:
1) It usually takes excellent pictures if you know how to use it.
2) For the price I think you would be hard pressed to find a better camera.
3) The SLR like controls make it nearly seamless for me to transition between my SLR and this camera, as well as allowing me to practice techniques using the same modes. With this camera I can get instant feedback and adjust settings to get the perfect shot before it disappears. This ability has allowed me to get some stunning sunset shots I would normally have missed.
Other notes:
1) While RAW format pictures would be nice, it still takes pictures good enough if you turn the compression all the way down. With the resolution cranked and the compression at a minimum, the 3.2 shots come out to between 1.2MB and 1.6MB each. With a 256MB memory card, this is the setting I usually leave it on, and I have never run out of memory.
2) The auto focus on the system overall is pretty good. It is fast, as long as you are patient enough to wait for it to settle down. It has a very difficult time with low light situations and I frequently find myself using the manual focus mode. An illuminator would help greatly, and they do have one on their hot shoe mount flashes.
Also, make sure and look at this camera in person before purchasing - it is much smaller than it looks (for good or bad).
Overall I would buy the camera again. For the price it takes very good pictures. I don't expect this camera to last as long as my Minolta Alpha-7000 has, but I do expect it to get more use.