For me, at least, the fack that the LZ series from Panasonic have no optical viewfinder is a big thing. It overrides image stabilization. Certainly, a poor quality LCD is going to make a viewfinder-less digital camera even more difficult to use, or at least it would be for me.
In contrast, the Canon A-95 is proven hardware. It has justly received great reviews and it is very fairly priced as well. All in all, I believe that the Canon A-95 offers a better value.
I'd go with the Canon A95. I suppose my vote may have been fueled by the fact that I own one ... . It takes great pictures, I was really blown away with the quality and versitility of the camera. I can post some pictures here if you like -- untouched straight from the Camera. In fact I will just go ahead and do that for ya later tonight when I get home.
update: Naturally they will have to be reduced in size.
this picture is of my pup, it was taken with my Canon A95 inside a garage at 1/60 @ ISO200. This is a 4x6 crop of the original then reduced size for web display. other than that it is straight from the camera, no post editing.
Again, this was taken with my Canon A95. 1/640, f/4.9, portrait mode macro mode. This is a 4x6 crop of the original then reduced size for web display. other than that it is straight from the camera, no post editing.
And finally another Canon A95 Picture taken at 1/6 exp. f/5.6. ISO Auto. This image is straight from the camera. I resized it for the web, orignal image size in pixels was 2592x1944 I reduced it to 600x450 and reduced the quality down to 75%. Hope these pictures help you decide which camera is right for you!
I agree with the other posters -- go with the Canon. I recently upgraded to the A85 from the A25 and I have been nothing but impressed with the whole PowerShot line of digital cameras. Before using a Canon I had a Sony and a Kodak digital camera -- both were good but not quite what I was looking for.