Can you get a tele-converter for it?
I'm happy so far with my Canon G10, which has a 28-140mm lens, but not as fast as the LX3, F2.8 is the widest aperture. I haven't used it extensively, and I'm still learning, but the images I've taken so far have a good image quality.
Edit: it could not be described as compact in any way. The back is roughly the same area as a dSLR, the body being (slightly) thinner, though, and it doesn't have a protruding lens.