I have the Z10 as well as the K20D, and I take the Z10 when I don't want to lug around the big guy. The 7x zoom does quite nicely for most intents and purposes. The only things I would complain about is the lack of a true macro mode and true optical image stabilization. Other than that, it's a fine P&S and VERY easy to carry around!
The frame feature is a cute gimmick and has little uses other than make a quick print to a PicBridge compatible printer (connecting the camera directly to the USB port of a compatible printer). The frame images that you can download from the Pentax website are stored on your SD card in a folder called FRAMES and the camera can access the frames there. Remember, when you use frames in the camera, your picture size drops to 3MP instead of 8MP... so an 8x10 is probably the maximum size you could optimally print using this feature.
Alex