I have been testing my Digilux 2 and today I shot especially close-ups with it. It is certainly not any macro-capable camera but it delivers nice close-ups. If you want blurred background and some bokeh with this camera it is best to use 90mm focal length and the widest aperture (f/2.4). I'm quite pleased and actually surprised how nice background blur I got (remember that this camera has a 2/3″ sensor).
All shots below are not cropped at all and present about the maximum close-up magnification you can get from it. I've noticed that it is better to put camera's sharpness adjustment to “low” to prevent over-sharpening (I've kept contrast and saturation adjustments in “standard”). The key is to use mild selective sharpening in post-processing (I used adjustment brush in LR). Another important and handy feature is camera's ability to shoot three-shot series (3 shots in about 1.5 seconds). This is very useful especially if you shoot handheld as I've done here. Shooting series minimizes the motion blur in handheld shots and usually at least one of the three will be reasonably sharp. Series shooting is very nice feature also for shooting indoor portraits without a flash. Blur is minimized and there is also an additional bonus – you'll get different facial expressions to choose from during that 1.5 second period. I used mainly “AF-Macro” but tested also manual focusing which was actually nice and I will test it more later on.
All in all I can say that Leica Digilux 2 surprised me very positively by its close-up properties.