Err...pros of FZ100:
Mechanical shutter (found in only SLR's not not normally used in Megazooms)
best 1080p video quality (among all the mega zooms currently available)
CMOS sensors unlike other megazoooms
u can get upto 11 FPS per second on this camera
.... Just imagine - by the time u take 1 snap in the FZ40 u take around 7 in the FZ100
..... Gives u a feel of a SLR
Regarding the still image quality...I do agree; the idiots at panasonic forgot about the image quality when putting in the features....But its not a huge difference; u can make out the difference only when taking landscape pictures, and low light pictures. But all this can be adjusted with Manual settings
But remember...it rocks over FZ40 in the picture quality but crisper pics and a better 1080p support