Chris, great shot again. What do you mean by "dialed-open the lens"? I've still to get through the manual of my one-day old X100...
Thanks Rob - as you change the aperture of the lens, opening it up wider, you get a progressively smaller amount of the scene in focus, front to back.
On the camera, wider apertures are the smaller numbers on the aperture ring at the front - on the X100 f2 is the widest open it will go, and this gives the narrowest 'depth of field' as they call it - the distance in front and behind the target you focussed on that's also in focus.
I use depth of field (DOF) to try and make the subject in focus, but keep the other stuff less in focus - so you naturally get focussed (excuse the pun) on the subject when you look at the photo.
That's what I did with the Scarecrow - by focussing on the eyes (the subject), and setting the aperture at f2 (making the DOF the smallest), only the eyes and face are sharp, and the rest of the scarecrow is blurry, and the background is really blurry.
Have a play with it on the X100 - put the camera in Aperture mode (line up the shutter speed dial to the A position)
Now grab the aperture ring on the lens and open to f2 - dial shown here at f8
Get up-close to something in the house or garden and start snapping away - you'll see how only the very bit you focussed on is sharp, especially when you get up-close to the subject.
You can then change the aperture and see how it progressively changes the DOF in each shot.
The difference for X100 users, is that their lens has this nice wide-open aperture to use - giving you all of these creative possibilities. Most point and shoot camera have lenses with apertures that won't open that far, so they can't achieve the same lovely DOF effects in their images.