I felt like I needed a compact, easy to keep up with, digital camera for when I didn't want to mess with a DSLR, even the Rebel gets to be more than I want to carry sometimes when "running errands", usually can't resist grabbing other lenses and first thing I know I have a "bagfull" to "mess with".
I started looking at micro four thirds stuff and the Olympus Pen series seemed what I was looking for. Users really liked the color coming out of them, then I noticed on amazon the Pen e-PL1 was selling for as low as $290 with 14-42 "kit" lens. Video was limited to 1280x720 but the price was right to "try it out".
So I ordered it, added the 14mm Lumix f2.5 lens for $249 to it and a $200 VF-2 electronic viewfinder. It came in yesterday and I put the battery on charge.
Quick tests shooting stills look very good, ISO only goes up to 3200 and so far noise does not seem to be objectionable. Video looks fairly good also, I took a short test clip inside and put it on the timeline of my NLE, rendered it out to 60p WMV. The electronic viewfinder makes outdoor shooting and review easy. So far I really like it.
Later versions like the Pen e-Mini, e-P3 or e-PL3 offer more "performance" (ISO's up to 12,800 and faster autofocus but then the price is $499-$899 for body and "kit" zoom. You can get a Canon T3i for $709 at B&H right now.
I found the Lumix 20mm f1.7 on Adorama at a decent price and placed an order about an hour ago. This won't be replacing my Canon's (7D, 60D) in any way, just something that will go in a jacket pocket (with the "pancake" lenses) yet still take decent lenses when needed.
When GH-2 body prices drop I'll already have lenses on hand and may give that a try for video.