Originally posted by rparmar The result is a camera system sold as a fashion accessory. It's nifty, it's cool, it's tiny and cute. And there is no other way to sell it, really, since it is so overpriced as to be ridiculous.
Basically there are only three sizes of camera for the masses: pocket, handbag, too big. Kit out an m43 with EVF and decent lens and it's too big for the pocket. One may as well buy a K-x with a DA40. Instantly one has a much more capable camera with bigger sensor and other advantages.
Pentax should stick with the APS-C format it committed to and fill in the rest of the system (teleconverter, fast normal, etc.) This will provide a nice upgrade path for people limited by m43.
I don't really find it to be a fashion accessory at all, much more a complement to my Pentax gear. I think the key think you left out is it is a system most (not all) people would be much more likely to have with them. I have a bag which does not fit the K-x and 40mm lens. It does however fit the GF1, 20mm and 14-42mm olympus kit lens. Attached to the side of the bag I have a lens pouch for the panasonic 45-200mm, and on the bag strap I have the small leather case carrying the GF1 evf. So, in the area the size of about 4x8x10 inches I have a pretty fleshed out, take with me everywhere kit - when I don't want the bulk of my (admittedly better, but not overwhelmingly so) Pentax gear.
Granted, prices are expensive! I received discounts through the panasonic EPP program, with which my employer is a participant (I assume my employer has some sort of business relationship and we get that benefit as a perk). At the same time, the Olympus e-pl1 (already going for $550 or so on ebay, close to $500 after cashback) is getting into the price range that is no longer completely out of the park, so to speak.
One other thought - if you buy a K-x and DA 40mm, doesn't that put you right at the price of a GF1/20mm?