But it needs internal competition to be attractive to buyers and that hasn't been realized yet.
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Why ? These statements sound very authorative & knowing, but where's the evidence ? Does a potential E-500 or E-330 buyer think "oh dear, there's no internal competition, it isn't very attractive" ? I don't think so. They think, well, this Pentax seems nice too...but this E-500 has got a better zoom... hmm, this Canon is a nice silver. You see lots of Canons on TV....
I think the main fallout of any market failure of the Lumix L1 will be on Panasonic.
To be honest, if the L1 was totally fantastic, the doomsayers would be saying that it would kill off Olympus.... and therefore 4/3 is dead ... blabla.