I suspect that the logic is as follows: The two green channels in cameras such as the Olympus models have slightly different spectral responses in the color filters, but overall they are more similar than different. Averaging the two gives the local G response, taking the difference gives additional spectral information to do better color separation. Dcraw apparently disregards this extra information, but in principle one should be able to construct a color profile that does. I don't know whether any converters other than the one from Olympus does, however (I presume Olympus makes use of this information somewhere along the line, otherwise it is indeed rather pointless).
I would agree, though, that resolution must take somewhat of a hit, since most good demosaic algorithms use the higher sampling of the G channel to bring the demosaic'd data's resolution close to the Nyquist of the sensor array; by making the two greens slightly different in spectral response, one cannot tell whether differing green values are due to Nyquist textured luminance information, or aliased color difference information due to the different responses. Averaging the two (as in dcraw) would erase the highest frequency detail.