Its not that big a flash.
I would probably do most of my photos from the 16mm pictured but the 18-55 isnt much more in $$ but a whole lot more in terms of size.
You can add a fish eye and macro adaptor to the 16mm.
The things I like about this over a standard compact is : HD Video, high ISO range and fast AF... hopefully its worth it. I must say I'm a bit disappointed in the Canon 60D as it is a step downward towards consumer level and the 7D isn't quite justifiable at the moment. I now have a 5D(mk1) and while it doesn't do video and the MP isnt as much higher as I'd like, its still a big step up from the 20D.
http://www.imaging-resource.com/PRODS/NEX5/NEX5A.HTM