It has the same very good sensor as the Fuji X10, but it's much more compact, it looks really nice, and it's a bit cheaper than the X10, $500. The lens is probably about as good, and has good macro. It's very fast at the wide zoom end, 1.8, but not as fast as the X10 on the long end, 4.9, which is pretty normal. (The X10 has an exceptionally fast 2.8 at the long end.)
I'd hazard that the X10 is a real photographers' camera, with classic camera looks and an optical viewfinder, whereas the XF1 is more of a gentleman-shooter's camera, sleek and pretty and pocketable. (It comes in black, tan, and red.)
(Here's my own X10.) (I made a google search for Fuji X10, and this was in the top row. But I better get one also which is meant to show the camera clearer.)
See what I mean? It's a real man-man's camera (at the compact end), where the XF1 is rather for the more style conscious dude or dudette. But I think their capabilities are quite similar.