The viewable area of the flash widget is 540x540. You can zoom in 2x. There's plenty of sensor artefacting at that zoom, (even in these carefully chosen press-kit photos, which is worrying) so lets assume it's 1:1... which makes the image size 1080x1080. 1.16 megapixels, for $400? Ouch. For that much money, two ounces more weight, and a much more conventional form factor, you can get a DMC-LX5, which is probably the best single-lens digital camera on the market. (Full disclosure: I bought a LX3 with my own money back in 2009)
Poking around with Chrome's network tools will tell you that the LFP file is between 900 and 1100 kilobytes, about four times bigger than a JPEG of the same dimensions.