FINALLY...Olypus have hit their old niche
As an avid Olypus photographer (E-3, E-500, SW1030, etc.), I have been eagerly waiting for Oly to recapture the niche that was their's back in the days of 35mm film: small, light travel cameras that did little to sacrifice quality. The 4/3ds format was supposed to be their position in that in digital, but the APS-C camers turned out to be not much heavier or lighter, leaving Oly with their top-quality optics but sensors that couldn't compete with APS-C in dynamic range, and bodies nearly as bulky and heavy.
Now the E-P1 and Micro 4/3ds changes all of that, enabling Oly to finally reduce the flange to sensor distance to almost nothing, resulting in a camera that can take advantage of Oly's great optical designs. Sure the sensors still won't have the dynamic range of APS-C, but the gap is so small now, and the E-P1 so much smaller and lighter, that it now has a niche - the ultimate travel camera. Nice one Oly - again the innovator.