What's great: Like the Nikon the Olympus has a 1.8 aperture, but it also has a better sensor and other electronics inside.
Plus, the XZ-1 has more manual control settings and creative extras, such as an outlet for an external flash.
What's not: High-def video can be dark in low lighting. It also feels a bit portly, and its lens cap pops off easily and can quickly be lost.
Bottom line: The Olympus is the best in class for the serious amateur photographer, but it's got a steep price tag too.