Yes you're right, when shooting 16:9 there's black cropping. But the LCD is already huge, no big loss of view. I had no problems whatsoever.
For the LX-3 display is 3:2 but the CCD remains 16:9.
So when you select 16:9 format then the LCD display have black cropping top & bottom?
I'm use to taking the full 16:9 format & wonder whether the LCD display image becomes smaller.