Having used both cameras at a little, I think a lot of the above makes two classic mistakes - too much attention to a single easily measured characteristic, in this case sensor size, which you use to make overly definite statements about two cameras one of which you haven't used. because when you look away from that single stat and at the two cameras in real use, there are several factors that even things up in the LX7's favour. I.e.
- The LX7 has a jaw-dropping, I-can't-believe-this-isn't-a-Canon-L-Series, A+ lens. In fact, looking at stills, I honestly believe that a series of primes couldn't do a noticeably better job. But the Sony's lens, well, it's is a fuzzy-cornered B.
- The LX7 lens goes down to 24mm; the Sony's 28mm is nowhere as useful in interiors or for getting dramatic perspective effects. And to get even that wide you have to switch off stabilization - otherwise the Sony barely goes wider than 35mm equivalent. 24 vs 35mm is a huuuuge difference.
My own limited epxerience - which seems confirmed by the few comparison videos I can find - suggests that the LX7 stabilization and autofocus are more robust (I found the manual focus on the Sony to be too annoying/difficult to use because I couldn't get focus peaking to work in video mode - was this me or the camera?)
As for blown LX7 highights in sample videos, when people have agreed that they can't find ones shot "professionally".... this doesn't really say much about the results someone who knows what they are doing will get. Camera exposure and white balance systems are stupid and getting a good exposure is hard, which is why it is the subject of entire books. The Sony's sensor size should be an advantage, but only if the entire scanning chain is equal in every other way. If you look at empirical measurements of DR (which I could ony find for jpgs but which should be indicative) then the cameras run evenly until 1600 iso: http://www.techradar.com/reviews/cameras-and-camcorders/cameras/compact-cameras/panasonic-lx7-1089288/review/5
Neither camera is perfect. Both are amazing in some ways but severely limited on others - you have to *carefully* consider which limitations matter most to the work you want to do. For example, if I had to shoot in interiors like this then I'd regret giving up the RX100's (limited but valuable potential) for dof effects, but I'd do it in a heartbeat (which is what I did.) Better DR over 1600 iso I didn't give a thought too, because I don't need it - ymmv.