FatBoy,
You're not wrong about that camera.
I just finished reading the full 34 page review here:
http://www.dpreview.com/reviews/panasonicgf1/
It seems to be the perfect camera between "point and shoot" and "DSLR" in size, performance, and price, although the price is about the same as entry level DSLRs. I like the smaller size and that 20mm lens is incredible. There is also a zoom lens available that you didn't mention. I take it you're a purest.
We own two Panasonic Lumix cameras, both older 6 megapixel ones, my wife's purse point and shoot and my old (one of the first) superzoom 12x ones and they have always performed well for what they are. I also have an older Canon pocket camera (also 6mp) that I've been happy with. I've always considered Canon and Panasonic my favorite two brands of digital camera offerings, and before the current ones I owned a Fuji (p&s), Olympus (superzoom), and a Nikon (p&s).
When I can afford a new camera I will certainly consider this one or one of it's successors.