I maxed it out on the photos on p.782 and they didn't smudge. The worst effect I can see on my monitors was that the leg of the cigarette vendor which had a lamp reflection on it looked like it was made of brown Barbie plastic. Then again, Olympus' software is worse - at max setting, there was still too much visible noise left, and the details were smudged. The most horrible aspect of this software though is how much RAM it needs to run - it's slow, and it slows down my laptop if it's on Eco mode. LR has no issues at that battery-sipping processor setting though. Still, it might be worse at higher ISO's, but the thing is with the weather here I won't really go past ISO3200 anyway; beyond that even the RAW file is smudged beyond repair.
Some current otherwise decent compact cameras have visible noise at base ISO - mostly the ones with better ergos and a viewfinder. What's frustrating isn't that in itself, but that there are pocket cams with larger sensors that do better than those, that it kinda felt like manufacturers said, "OK, you want dedicated buttons and a viewfinder of some sort, or a tiny one with a large sensor?"