They're still hobbled by the small sensor size.  As technology improves 
and 24x36mm sensors become more prevalent, (and there's no upgrade path 
even possible), I think this will be relegated to a second class system, 
sort of where 4:3 is headed today. The same issue that always comes up 
when comparing formats, bigger is better, (higher image quality), if you 
can afford it.

Mike Johnson had an interesting take on lens compactness.  He always 
thought that amateurs liked telephotos for their extra reach, smaller 
formats make for smaller long lenses with the same reach, so that would 
be good.  But it's not the  effective focal length it's the physical 
size that matters.  Most amateurs want big lenses because they look more 
impressive.  My 400 captures the same image, (on my sensor), as your 800 
on your's, but the 800 trumps.

In other words size /still/ matters.

Subash wrote:
> since no one seems to have posted the link here... :-)
>
> http://www.dpreview.com/Previews/PanasonicG1/
>
>   


-- 
You get further with a kind word and a gun, than with a kind word alone.
        --Al Capone.


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