Well, the camera may be mediocre, but the bikes are awesome! I used a G1 for a short period and didn't notice any significant issues with image quality. I use a GH2 now, and I'm very happy with it.
You stated that you are working on the images in Photoshop. Are you shooting in RAW? I would agree that the JPG images out of a Panasonic are not that great, but the RAW images with modest amount of PP are excellent.