Having used the Oly-EP1 I can honestly say that I would not trade my D700 for it when image quality is important. Also the viewfinder is nice when you are shooting in bright day light. But the compact size is nice. It would be a good option for party/holiday snappers that want better image quality than the compact point and shoots out there but don't want the full dSLR. But like I said for the photographers serious about the image quality the larger sensor is the way to go.
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Rex K
The view from my "office" doesn't suck. 
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