Not all the NYC stores are scammers. I bought my club camera, a Canon SD1000, from a store on eBay located in NYC and didn't have a single hiccup. Shipping was secure and prompt and the price at the time was very reasonable. What worries me more, are the seemingly good prices that eBay stores offer through these package deals. The products included in these packages are oft times of very cheap build and in the long run you'd be better off just getting the camera by itself and buying what you need seperately. If I were you, I'd steer clear of most of the package deals being offered through these big companies.
In regards to the camera itself, Panasonic's range of ultra zoom point & shoots are very decent indeed and come highly recommended for a reason. I still use my FZ5 when I don't feel like lugging my Nikon F2 or D50 around and while performance still can't match that of a DSLR, the benefit of smaller size and weight along with the image stabilized 12x zoom imo make it a keeper.
High ISO performance, like most non DSLRS actually, isn't great (ISO200 is pretty grainy) but the IS lens allows you to shoot in almost every situation with ISO80 as the camera can be handheld down past 1/6 of a second at f/2.8 without noticeable motion blur (At least IME).
Sizewise, I personally don't find the camera too big, it was quite the contrary for me actually. I was really impressed with the expansive feauture set they were able to fit into such a compact package. While you can't exactly slip it into a pants pocket, it fits very nicely in the palm of your hand and if need be, can easily be slipped in to your wife or gf's purse or handbag. As for build quality, yes the plastic body does feel a bit cheap but it helps keep the weight down and regardless of the way it feels, it's quite tough. My FZ5 is my beater camera and has been exposed to pretty much everything someone could throw at it and it still barely has a scratch on the body. And honestly at this price point, you can't really complain about the plasticky build quality, especially considering the amount of camera that you're getting. For me, the bottom line is that the Panny ultra zooms offer a lot of performance for the money and make a great accompanying camera to a DSLR and an ultra compact.