The best replacement for lumix lx5 is canon s95.

The best alternatives to lumix lx5 are rated as following:
★★★★★  canon s95
★★★★  canon g12
★★★  leica d-lux 5
★★  lx3
★★  s95
★★  canon s100
★  olympus xz-1
★  olympus xz 1
★  nikon p7000
  olympus xz1
  lumix lx3
  powershot s95
  lumix gf1
  samsung ex1

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lumix lx5
canon s95
canon g12