Compared to the most obvious competitors - the Canon S3 IS and Panasonic DMC-FZ7 - the Sony H5 scores highly in handling, features, overall image quality and ease of use, and only really falls short in a couple of areas; burst mode, focus speed in low light (specifically at the long end of the zoom), and the purple fringing. The Canon S3IS wins hands-down when it coes to movies, the FZ7's lens and superior image stabilization means that at lower ISO settings it still, just, rules the roost when it comes to edge-to-edge sharpness, but the H5 offers a very attractive overall package that handles better than either, and - if that's what you like in a camera - has that nice big screen to boot.
The choice when looking at this class of camera is a difficult one, and one that more often than not comes down to handling, personal preference (in terms of the actual output) and how important certain specific features (in this case the screen, basically) are to you. The H2 represents far better value for money than the H5, which is why I still consider it to be the pick of the bunch, but the H5 still offers an awful lot of 'bang for your buck'. Whilst it would be unfair to penalise the H5 simply because it doesn't offer a lot more than the H2 in terms of real benefits, I would point out that whereas the $399 H2 was an easy choice for a Highly Recommended, the H5, like the Canon S3 IS, was a much closer call.
