If you're looking at image quality, there's no doubt the DSLR wins hands down.
It has a bigger sensor and lower pixel density(3.8 MP/cm² vs 24 MP/cm²) to give you cleaner shots.
Sure, the LX3's image quality might be on par with the A350's image quality when the LX3's ISO settings are low, but once you start bumping up the ISO, the LX3 struggles with noise.
But there's no denying that the LX3 performs superbly and is one of the top performers in its class, the high-end compacts.

twin lens kit is worth if u're not going to upgrade lately..

but for me, i would suggest u to get a better lens iin future
Coz the twin lens kit not as good as those first class grade lens =p

Glad you like what you've settled with. 
well said.

If you want video get a camcorder lah. Why the fuss?
I think both can't do MF but macro shooting yes (correct me if I'm wrong)

Anyway since when was there a SP590UZ? IINM there's only a SP560UZ.  I'd recommend the FZ28 over the Olympus though, but if the features layout isn't comfy to you the Olympus does a real good job too.

I don't think a 1/1.63" sensor warrants the "almost as big" comparison with the 1/2.33" sensor of the FZ28....
For compact standards....this is a very big leap 

I dunno how to explain - but the FZ28's sensor is really, really comparable with the LX3's images. Personally molested both, so I can be confident in my words.
Not really easily, but yes, it can take photos that are measurable to the LX3's height - but can't beat it.