What are the other characteristics/ factors?
The Strengths of M4/3
2. Shorter Lens-Sensor Distance: The distance between the end of the lens and the sensor in M4/3 is just half of that in the ful 4/3 system, resulting from the deletion of the reflex mirror and the pentaprism. This cotributes significantly to the smaller size of the M4/3 cameras and their lenses. But to me, the size of the sensor is as important as the size of the body and lenses. The cropped M4/3 sensor is not even in APS's size. This doesn't matter because as evidenced by the E-P1's sample photos available so far, the image quality is from great (at low ISO) to good (even at ISO 1600 IMO).
The main issue is: a cropped sensor gives extensive sharpness in the images and renders the smaller F values (larger aperture) less useful in relation to a blurry background. If I were to switch to the M4/3 system, it would replace my existing DSLR/SLR systems. And chances are I would need to do a blurry background, expecially for portraits. This is another area I would check out for the E-P1.
A pictorial illustration of the shorter lens-sensor distance 3. Downsized lenses
The M4/3 is not all about the lighter body. The focus is more on streamlining the lenses. The M4/3 lenses are smaller than those for the full 4/3 by about 6mm in diameter, without affecting the image quality as quoted from Olmpus' information.
4. 11 Communication Points
The communication points between the camera and the lens are increased from the full 4/3's 9 points to 11 points. Understandably, this is for the increased digital capbilities of the mirco system as technology advances
The communication points are for information transfer between the lens and the body. More communication points 
These are all good news. The choices of M4/3 lenses will be wide enough. This will make the system more comparable to the proper DSLR system in a way. So will the investment accompaning it. As far as I'm concerned, the success of the M4/3 system lies heavily in its pricing. Existing DSLR users will need good reasons to go for a switch or an additional system. Existing DC users will not bother much about it. Perspective users are facing a tough choice between the full, proper and proven DSLR system and the M4/3 system in terms of IQ, portability and even investment. For the three factors the M4/3 doesn't necessarily gain an upper hand or at least an adequate edge.
5. LiveView and Video Recording
As said , the M4/3 is targeted at female and family users, who are more likely concerned about the video recording function in a camera. As we saw from Nevin's links to the two videos, the quality is really gobsmacking, to steal from him.
But this is not a killer feature which would compel users to switch to the M4/3 system. The LiveView is welcomed. But this is only as good as it gets. We all have come across the embarrassing situation that the LCD screen doesn't help to tell the composition or exposure of the scene under the bright sunlight. This is okay for a DCs. But if I have contributed the investment in a system which I am going to use seriously, that is not to be forgiven. The E-P1 comes up with a EVF. That's great except for defeating the rationale behind the design: lightness in size and weight, not to mention that the body itself is not really so in the first place.
In a Word
Well, to switch to a new system or not is a personal choice after all. And owning and playing with a new system are always exciting. But I would be more prudent in telling myself the cogent arguments for embracing it. For the time being, I have none. I don't mean to belittle the breakthroughs afforded by the E-P1. Olympus has a job well done really, not least for the adopting a retro design. I am just saying that investment has costs. And I'd rather devote more time and efforts and money to advancing my photography techniques.
This is all personal. Until next time.
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