Have you considered the Canon A720IS? I was thinking about the A570 and LZ7 also, but in my opinion the A720 has both of them beat in terms of image quality, lens sharpness and handling (the A720IS has great ergonomics). It's only about $40 more than those other two cameras.
I think i have narrowed it down to 2 choices. That's if i don't change my mind again lol.
Either the Canon Powershot A570 or the Panasonic LZ7
Pluses for each:
They both have Optical Image Stabilisation.
The A570 has a viewfinder that i am still debating if i really need it or not. It also has Manual Controls that i will probably never use. I like things simple, just point and shoot. But it's nice just to know they are there.
I hear they both have good image quality. But when it comes to low light, different sites and message boards say different things. One message said the A570 was better in low light. Another said that the LZ7 was terrible in low light. And finally cameras.co.uk said about the LZ7 "Both my indoor tests in lower light produce good results". Maybe i'm worrying too much about Low Light and my pictures will look ok with either camera.
The LZ7 silver edition i think just looks nicer and slicker than the A570. The black version it growing on me too. It's slick like a caddilac lol.
And with the LZ7 you load the SD card in the side of the camera instead of the battery compartment which i find a major plus.
So i'm sort of leading towards the LZ7 but i am wondering if i can live without all the extras of the A570.
It's such a tough choice. I still have about a week to think about it. If everything goes my way i'll have my new camera by then.