Yes, as Lucille aptly shows, the quality of the lens is outstanding. It's not without its tiny faults, but then, what lens (especially at that price point) isn't? The longer I look at the pictures available, the more I get the impression that the camera is actually quite a bargain: Great fast lens (no match available in its class - I'm talking 1'' sensors here; furthermore it also beats the heck out of all mFT lenses at a similar price point!), more than decent EVF, advanced P&S (but not better) handling - not quite on par with the LX7 in that respect, but at least as good as the S95 (the S120 I tried and the LF1 handled much the same as the S95, btw.) except for the lens ring for stills (it's great for video, though - something that leaves me cold ...). And it's darned small for what it delivers. All in all, it's really very hard to beat if you really do the maths.
Anyhow, it may still not be entirely what I personally want from a camera of that status. But there's no denying that it's a fantastic point and shoot - and it produces an IQ that comes close to that of quite a couple of mirrorless cameras. You can get better results pairing a GX7 (or my personal favourite for price and performance, the E-M10) with one of the f/2.8 zooms available - but the package will be a lot(!) bigger and heavier, and about twice the price. The lens on the LX7 is probably just as good, but the sensor clearly isn't - by some margin. At the moment, only the GM1 with its kit zoom comes close in price and capabilty (and it's more versatile, of course) - but the kit zoom, while quite good, isn't near as nice as the RX100 III's lens besides from from being two full steps slower, while anything bigger defeats the argument and cripples the camera, plus there's no EVF. If I'm not missing anything important, Sony has produced another winner - if it wins me over remains to be seen, but I have to admit that it's really impressive.
That doesn't mean one has to like it ...
M.