Panasonic Lumix GM1 Review, article.
The GM1 is getting praise whereever it goes. And I can confirm that the world's most compact M4/3 camera is indeed a high-quality, small, beautiful, and very charming little camera. I love the design, clean, simple, lovely.
(I'd say it has two downsides: no tiltable screen and no in-body stabilization. But both would probably add to the bulk.)