The PowerShot G1 X ($799.99 list) is not the camera we thought Canon would unveil last month. What was expected was a small mirrorless camera with a large sensor and interchangeable lenses to compete with models like the Olympus E-PL3 ($699.99, 3.5 stars), Sony Alpha NEX-5N ($699.95, 4.5 stars), and Nikon J1 ($649.95, 3.5 stars), just to name a few. Defying expectations, Canon released a zooming point-and-shoot camera that is, at its most basic, a PowerShot G12 ($499.99, 2.5 stars) with a 14-megapixel image sensor that is sized just in between a Micro Four Thirds camera and an APS-C D-SLR. Other cameramakers have made large sensor digital compacts with noninterchangeable lenses, noted examples being the Leica X1 ($1,995, 3 stars), the Fuji X100 ($1,199), and the Sigma DPx1 ($800)—but none of those cameras has a zoom lens. Another Canon camera, the PowerShot S100 ($429.99, 4.5 stars) is our Editors' Choice for high-end compacts, although it is a very different beast.

Design and Features

The G1 X's big advantage over a comparable interchangeable lens camera is the size of its lens. I could slide the camera into the cargo pocket of my pants or an inside jacket pocket with ease, whereas I wouldn't be able to do the same with our Editors' Choice Sony Alpha NEX-C3  ($649.95, 4.5 stars) with its 18-55mm (27-82.5mm equivalent) lens mounted. This is because the G1 X's power zoom lens retracts when not in use, an advantage that the manual zoom lenses that are commonplace in the interchangeable lens market do not share. Some Micro Four Thirds lenses have attempted to resolve this with collapsible designs. The kit lens that Olympus includes with its PEN series of cameras is a 14-42mm (28-84mm equivalent) features a collapsing mechanism, but it still protrudes further from the camera than the G1 X's 4x (28-112mm equivalent) zoom lens when collapsed. Panasonic has developed the Lumix G X Vario PZ 14-42mm f/3.5-5.6 ($399.99) power zoom  Micro Four Thirds lens that, when paired with a compact camera like its Lumix GF3 ($499.99 body only, 3.5 stars) can deliver similar size with interchangeable lenses, but that combination serves as the exception rather than the rule.

Looking at the numbers, the G1 X measures 3.2 by 4.6 by 2.6 inches (HWD) and weighs 19 ounces. The PowerShot G12 is a bit smaller all around, coming in at 3 by 4.4 by 1.9 inches in size and 12.4 ounces in weight. The G12 also features a slightly longer—and faster—lens, a 5x (28-140mm f/2.8-4.5) zoom. The G1 X's lens has to cover a much large image sensor, so its less ambitious 4x (28-112mm f/2.8-5.8) design is understandable—but the lens slows to f/5 by the mid-point of its zoom. This limits your ability to use it at any focal length but its widest in lower light sans flash, an area where fast-lens compacts like the Olympus XZ-1 ($499.99, 3.5 stars) excel.

The camera's rear LCD features an articulating design. The hinge makes it possible to use it from above and below or, for the adventurous, from the left side of the camera. It is 3 inches in size and is packed with 922k dots, barely edging out the 921k dot resolution of the display found on the Nikon Coolpix P7100 ($499.95, 4 stars). Like the P7100 and Canon G12, the G1 X features a zooming optical viewfinder. To my eye, it's just as good as the finders found on those cameras—it's a bit too small and a bit too dim for everyday use. The finder in the Fujifilm X10 ($599.95, 4 stars), another zooming compact with a larger-than-average image sensor, is much larger and brighter. The X10 feels like a camera that was designed for eye-level shooting, whereas the G1 X is one that is best used with the rear LCD.

The camera's control layout is one of its strong points—it offers enough buttons and dials to keep even the most enthusiastic enthusiast happy. An Exposure Compensation dial, with settings ranging from -3 to +3 in third-stop increments, surrounds the Mode dial on the top of the camera. The rear features dedicated buttons to record movies, adjust ISO, control flash settings, and toggle between focus modes. There is also a Shortcut button that can be reprogrammed to your liking via the camera's menu system. If you'd like to adjust a shooting setting that doesn't have a physical control, you can hit the Function button that is located at the center of the camera's rear 4-Way Command Dial. It brings up an overlay menu that gives you access to many functions, including the Drive mode, Self Timer, and White Balance. The camera does feature a hot shoe that is compatible with all Canon Speedlite flashes.

One area in which the G1 X falls a bit short is macro photography. Small sensor compacts can generally focus on objects that are only a few inches away, a feat that D-SLRs cannot match without a specialized macro lens. The G1 X does have a macro mode, but it only allows the camera to focus as close as 17.9 inches. The Fujifilm X10's 2/3-inch image sensor is a little less than half the size of the G1 X's 1.5-inch sensor measured when measured diagonally, which is one of the reasons that its lens can focus as close as 4 inches in standard macro mode or 0.4 inch in its Super Macro mode.

Another design choice that must be noted when talking about the G1 X is its autofocus assist beam. Many cameras shoot out a beam of light to increase focus speed and accuracy. These lights are generally red in color, and I've never used one that bothered people as much as the bright white beam that the G1 X emits. I had several people complain about it hurting their eyes when taking some snapshots with the G1 X—even more so than a camera flash. This wouldn't be so bad if the G1 X's autofocus was spot on, but in several instances I had it miss focus a bit, even with my subject clearly inside the outline of the focus area that the camera displays. I feel that part of this is my user error—the focus system is a bit slower than what I'm used to—it tends to hunt back and forth for a second before locking on. I probably fired the shutter as the camera was still trying to confirm final focus, but a camera in this price class should provide fast, accurate focus.