...So what would you recommend to replace my beloved G2?
Mine was a G3; still works, but was superseded by the Leica Digilux 2 more than 4 years ago, and then briefly by a Nikon D200 (too bulky for me). The thing I missed most from the G3 was exactly that swivelling screen (never used the optical "finder" on the G3: too d-mn lousy...).
Then, last autumn, I got the Panasonic G1 with 14 - 45 lens, and WOW! This was my G3, resurrected and far, far better! Same swivel screen, only much bigger, brighter and sharper. Very easy to focus manually (could be done with the G3 too, but it was a hit-or-miss affair). Much faster and better AF. Big sensor, meaning higher resolution and vastly improved hi-ISO performance. And the eye-level finder, while electronic, was much better than that tiny tube on the G3.
It´s a bit bulkier, but not all that much (I always kept a Lensmate adapter tube on my G3 to protect the lens, and to get a better way of holding the camera); the G3 wasn´t a pocketable camera either, and once you need to carry a case, it´s about the same.
I seriously suggest that you take a good look at the G1 (or GH1 if video is important to you).