Reading this thread I had to comment. It's important to point out that the DPReview of the 14-42x lens, and numerous comments on their Micro Four Thirds forum, makes the point that the blurring in question typically happens only at the long end...42mm...when shooting between 1/60 and 1/200. Saying that the lens is no good throughout its length is not correct...at least as far as what I have experienced and have read is concerned. It's definitely NOT a fiasco in my opinion.
I recently bought a GX1 with 14-42x lens and have taken over 300 images to test this out. I do see some very slight fuzziness at 42mm but only when shooting at the noted speeds, still it's not that bad. My copy of the lens came with the 1.1 firmware installed already...maybe that made it OK...don't know. All other focal lengths produce sharp images...if I do my part and make proper settings and use proper technique.
My take is that people tend to worry too much about things that may not really matter when taken in context to the advantages of having a very compact lens, that makes this outstanding camera generally more pocketable, than having the regular 14-42 or 14-45 lens attached. If the X lens produces sharp results at all lengths except 42mm, and if those results are still not that bad at 42mm, then why worry about it. Frankly, in two weeks of daily shooting inside and out, less than 5% of my images were taken at 42mm. I tend to shoot wide, and if I want to get closer, I move my feet. I am not dismissing this issue, and Panasonic needs to take a hard look at it...but maybe in my case the 1.1 lens firmware fixed it, or at least made the fuzziness acceptable at 42mm. From what I have read, many others have this same view. For me, I'll accept a bit of softness at 42mm at certain speeds...which in most cases I can change to get above 1/200 or below 1/60. It's the flexibility of the lens and its compactness that matters most to me.