My missus got me a NEX-5 Dual lens kit for below $700 just before Xmas (Myer 15% discount + Myer gift voucher discount + Sony $100 cash back + GST return due to travelling)

I find the NEX-5 is quite outstanding in many area. Fully customizable and lots of features you would only expect to be found on a SLR. It shoot RAW and it can do 7fps if quality and AF is not first priority in a particular situation (Canon SX30IS doesn't, which was another "convenient" camera I was looking)

While the 16mm f/2.8 pancake is not really a very outstanding lens, the 18-55 OSS doing just fine and the size make it quite easy to carry. The feature I LOVE the most is the sweep panoramic and the Full HD video is quite handy.

Even after the firmware update, I still do no find it quite a lot easier to access major functions like ISO, WB etc. But due to it's much small size and the APS-C sensor, I have been carry it around a lot more often than my 1DMkIII. (Which is gigantic in comparison)

I know I am not comparing apple to apple, the reaction speed of the NEX5 is kind of slow, slower than my 500D IMO, focusing is a pain even with "flexible point". AF in low light is impossible; Again, the menu navigation is rather painful for me. Plus it is quite easily buffer up if shooting continuously, even using a Class 10 SDHC.

But it also come with a few clever features that no other SLR can do. i.e. Handheld Twilight mode.

If I want absolute quality with my landscape or family portrait, I will still go for the 1D. But the NEX will ALWAYS be with me, maybe it is for the sweep panoramic when I am doing the landscape; or going out dinner with friends (and I don't want to lung a 1D and all the Ls in this case).

And its quite easy for my missus to "out facebook" her girlfriends with my photos