After reading both of these reviews, I'm pretty certain that I'm going to stop recommending the Zoom H2 to podcasters and journalists looking for a cheap handheld recorder with decent audio quality. While the H2 is just 2/3rds the price of the LS-10, and can double as a USB microphone for a PC, the LS-10 sounds significantly better, performs better with external microphones, and comes with 2GB or built in memory, which means that many users will never need to buy an expansion card at all.
It's not perfect by any means. It lacks the sturdy XLR inputs you'll find on higher end units like the Marantz PM660 or Fostex FR2-LE. And while the preamps are fairly clean when using the built in mics or an external microphone, to my ear they're not as clean as those on the Sony PCM-D50. The limiter feature also isn't as effective as that on the Sony recorder. But the LS-10 costs just about $300 (affiliate link), while the cheapest prices I've seen for the D50 are in the $450 to $480 range.