We've had our Fiat Panda 1.2 Dynamic Sound for nearly 3 years now and it's been an exceptional servant to our household. It is very at home in town - through tight streets and parking in small spaces. It has enough room to transport anything or anyone we have needed to move. It is good fun to drive - the gears are slick and the gear stick well positioned as are all of the cabin controls. On the open road it has more poke than our 1.1 active and can keep up with the traffic on the motorway and dual carriageway most of the time. A little more power would be useful for overtaking.
It is very economic averaging in excess of 50mpg across a range of driving conditions - occasionally dipping into the high 40's when worked hard. Cheap to insure and the servicing costs aren't too bad either (although we have noticed the 1.1 active is cheaper to service).
Our model is a dynamic sound which means that the sound system has a CD player, sub woofer and audio controls on the steering wheel. It has plenty of power - but at times you need it as the cabin can be a bit noisy on rougher roads due to tyre roar.
I would definitely get another Panda - but I would probably go for the 1.3 diesel next time due to the extra power and even better economy.