most of the review i read says the rx100 is a little sluggish though(slow menu response). might wanna give it a test 1st.

It's sluggish when writing files to SD... other than that, its a very speedy camera.

The LX7 is a great camera but just the RX100 is better imo.

The RAW files are much more robust while LX7 still got that compact sensor look to the files. RX100's dynamic range also wider than the LX7.

Ergonomically, I've had the similar sized XZ-1 for quite a while and its annoying having to use lenscap on compact camera. While its not big, its also a tight fit in my pants pocket.

How you define "better"?

Frankly.. most reputable camera brands has pretty good auto modes now but you won't be making full use of the potential image quality.

Panasonic..realistic white balance but image looks dull.
Sony... over saturated red and blue, too high contrast and excessive noise reduction.
Olympus.. oversaturated color and excessive noise reduction.
etc...

Which means... any camera also can. No need to spend so much
2K will get you a dslr but it won't get you a dslr with...

- a macro lens to shoot ants... of course you can reverse lens etc... or buy get macro adaptor but not optimum.
- also need a long lens for birding... which u can get the 55-250 for under 1K