I think the "white orb" (excessive sensor bloom) issue is real and, even if it is rarely severe, it does seriously compromise the reliability of the Fuji X10 as a photographic tool in situations where there is only one chance to get the shot. So, after seeing that the firmware fix was not effective, I decided to try building a tool using methods from my computational photography research to reduce the artificial look of the orbs. A sample of what it does is in the image above. A WWW version of the tool, DeOrbIt, is posted at:
http://aggregate.org/DIT/DEORBIT/
Full C source code will be freely distributed once I've tuned it better.
In case you're wondering, I'm a professor of electrical and computer engineering at the University of Kentucky, so I'm doing this as a service to the community with the hope that I might get a research publication or two out of it. I don't even own a Fuji camera.
I would be interested in hearing if there are other cameras with this problem (somebody said Pentax Q might?). None of my modern cameras do. Some of my older digitals have similar issues, but more often produced incorrect color in/around saturated regions rather than large white orbs.
Thanks.