Originally Posted by Entropy 
Oly/Pana aren't trying to compete with APS-C.
Unfortunately the "interchangeable lens" thing will kill its portability. Even the slight protrusion of my DMC-LX1's lens kills its portability - The Canon G9 is thicker overall but the lens does not protrude when the camera is off, so there's far less to "catch" on things when sliding it into/out of a shirt pocket or holster.
I think it will still be portable enough as long as they make a few pancake primes for it. They've already shown they can make them with the 25mm for their 4/3's SLR's, so I assume they will. I'm not looking for a micro sized Powershot SD1000; the LX2/LX3/G9 size range is fine; just something small enough to fit in a loose pants, or coat pocket. Zooms are probably out of the question though.
Plus, for times when I don't mind carrying a back pack the
Olympus 12-60mm f2.8-4 might just be the only lens I'll ever need.