I know I'm coming late to the micro-4/3 party, but my Canon G-7 died last weekend, and I was leaving the next day for a hiking trip. Luckily I was in a city with a camera store (Penn Camera in Tyson's Corner, VA), and they had a wide selection. I went down there pretty much ready to buy a G-11, but not really happy with that choice. So I looked at the S90, the G-11, and also the Olympus Pen and the Panasonic GF-1. I've never been particularly happy with image quality from any p+s camera, but there are plenty of situations when I don't want to carry a DSLR.
So I ended up lightly melting my credit card to buy the GF-1 and the 20/1.7 lens. Went home and shot some test photos, opened them up on my laptop, and wow -- I was surprised at the image quality at ISO 400 and 800. Opening the same photo from the G-7 at ISO 400 was a joke. Very nice. That 20mm lens is brutally sharp, with a really nice fade into the out of focus areas at f/2 or so. Great for candid people photography. Reminds me of a Leica CL with the 40/2. It's a focal length that I like.
To make this landscape related, here is a handheld 5-frame stitched pano from the Appalachian Trail just north of the James River in central Virginia, USA. The trail climbs 2500 feet in less than 5 miles, though that understates the difficulty of the climb in 90+ degree temps and carrying a full pack. This view is from the top, looking east.
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The GF-1/20mm strikes me as a good choice for a carry-around camera (it's lived in a small waist pack for more than a week, always ready), more so if one likes that focal length, of course. The RAW files are very nice and easy to work with in the latest ACR.