All good points, @DeadJohn . I especially agree on the "invisibility" of such a small camera and the security aspects. Still not getting one yet - but very enticing.
And an update:
I have had some interesting revelations so far.
1) I am going to redefine myself as more of an urban photographer than a street photographer (knowing that I could be totally wrong about this.) I generally think of a street photographer as someone who mainly photographs people and I am finding that while I do this as a part of my photo walks, I tend more towards environmental photos that show buildings, industry, and cars.
It may just be that unless I am in the mood or "brave" I shy away from the close up shots of people that are required with a 28, 35 or 40mm lens. I could be totally off here, but I want to convey my thought process as I proceed.
2) I got my K1 back from a friend's house and sat it next to my K3 II. While there is a pretty big size difference, I really love my K1. So I mounted a 40mm pancake and made it my camera for the day. It definitely is a bit too big to put in my little Ona bag face down for quick access, so I put on my Black Rapid Strap and wore the camera. And when I got to my desk at work, stuffed it in the bag. It fits well but requires some effort to pull out.
This also helped me overcome my reservations about having a camera by my side when I enter and exit the building! I am a photographer and I am proud of it!
And when I go to meetings or trips out of town (Boston next week), I will keep the camera in my bag, but pull it out while I roam.
3) As far as the K1 vs. K3 II. Unfortunately, I can't use my 21mm 3.2 on the K1 as it is not compatible and apparently has a lot of vignetting (I need to try it to confirm) so I mounted a 40mm 2.8 which is just fine. I am losing out on the wide-angle aspect, but shooting this morning was okay. And it also gives me a bit more breathing room when I do take the people shots - I expect a bit less in their face is a bit more comfortable for me (though I am not doing a lot at the moment.)
I also simply love the low light capabilities of the K1 over the K3. I am not sure how this would compare to a GR III - since the sensor and software have likely come a long way in the past two years.
Expect some photos to be posted in the next few days. As was pointed out earlier in this thread, getting a keeper is not as easy as it sounds.