I have a T2 which I bought many years ago. It has been an excellent camera. My only criticism is that it can vignette a bit sometimes although I only notice it as a slight darkening of the corners on pictures of blue skies and I find that this can actually enhance a picture.
I have not had any problems with the flash which to me does an excellent job considering its low power. I cannot remember the guide number. It is good for automatic fill in flash too and I haven't had any problems with unwanted shadows apart from the usual effect of using direct flash on e.g. a subject in front of light coloured wall. I don't find this to be too much of a problem with it.
The only problem with the anti-red eye mode which I find is that people, including me as taker of the picture, can move in the time between the two flashes and when the camera actually makes the exposure and this can cause movement blur.
I don't think that there is any solution to the general problem of harsh shadows from direct flash on a compact apart from perhaps adding a second flash which could be bounced off the ceiling or a wall to soften the shadows, the second flash being fired by a slave triggered by the camera flash but I have never tried it. Perhaps this is why Leica have added a shoe for a separate flash on the new CM. You could then bounce the additional flash but I don't know if the built in flash still goes off as a fill.