This is a similar deal to the way high sync works on the Canon compact cameras, and the same rules apply for sync speed vs. actual flash pulse duration.
I got to play around with this camera's newer big brother, a 4/3 Lumix GF1, in Dubai, and was very impressed with both the handling and the image quality.
If you have found that your new compact (or micro 4/3, etc.) camera can sync up high with external flashes, please hit us in the comments. Always good to know which models do that kind of thing.
UPDATE: Edit fixes incorrect label of LX3 as a micro 4/3. Thanks!
UPDATE2: So far, nothing but bad news in the comments on the 4/3 bodies...