The LX 7 is a superb high end compact, I have an LX 3 and love it. But a micro 4/3 will give you interchangeable lenses, a much bigger sensor and more control over dof.
There are some insane deals right now on mirrorless cameras - B&H has the Nikon V1 for $299 through Dec 31: http://www.bhphotovideo.com/c/produc...irrorless.html
"Reason takes a holiday as Dr. Horrible spends money he doesn't have, on a motorcycle he doesn't need, in a misguided attempt to recapture his youth which, upon reflection, wasn't all that great in the first place."
"Ride to the bar in your pirate outfit, guzzle some beer, play "Free Bird' on the juke box and then go home. Badass."