Reviving this thread rather than starting a new one seems the low impact way to offer my first impressions of the Olympus E-1 and 14-54 lens. (In the process, I get to answer Ray's recent question!)
The short version is that I find myself agreeing with almost everything that Michael said in his review about the performance and featuers of the camera, though not with his pessimistic prognosis for the 4/3 system. In particular, compared to the mid-level amateur 35mm film equipment and compact digicam that I am coming from (Canon Elan II with 28-105 f/3.5-4.5 USM, Olympus C2040), the E-1's feel, ergonomics, and general functioning are all a wonderful step up.
A few particular pleasures are the far lower barrel distortion at the wide end compared to either of those previous options, far faster auto-focus, and the excellent performance of the auto white balance, at least with common challenges like incandescent light bulbs.
However, I am in no position to make hands-on comparisons to other "DSLR plus lens" options that I could have got for a price similar to the US$2,000 that I payed.
If I were to write a fuller review, the main differences from Michael's are all related to firmware issues, so many or all might be due to firmware upgrades since his review.
Firstly, files are tagged as 314dpi rather than the 72ppi mentioned in his review, corresponding to a more reasonable 8"x6" default size. I would prefer 240ppi, matching a typical inkjet printer recommendation and giving a default size that almost perfectly fits the most common printer paper sizes, US letter and ISO A4.
Secondly, I can get to the histogram (or flashing highlights) review a little more simply. Regardless of the setting for post-shot review, I simply wait until the card access light stops flashing, press review, then press info. (No need to be in a 10 second or longer review mode.)
A final point about firmware; my camera did not come with the latest firmware, available for download, so I am deliberately using the factory installed version for a while so I can then compare to the newer version, and report.
Two changes I am curious to assess are
(a) a reportedly more aggressive auto exposure level choices; that is, pushing the histogram further to the right, improving shadow handling at a greater risk of blown highlights, and
( modified in camera sharpening, including a range of up to +5 instead of +3. Since the default is quite soft and the files reportedly sustain a lot of sharpening (is this due to a relatively strong low pass filter?) the practical question is whether this change increases the ability to get files that are well suited to printing straight out of the camera.