Digital Photography Review have published an extensive review of Panasonic's Micro Four Thirds 'almost-a-compact' camera. The review is generally favourable but, to my eyes, it still isn't compact enough to be genuinely 'pocketable' and it doesn't have a suitable form factor to be used with larger zoom lenses.
The picture below gives an idea of the different sizes of an LX3 (with lens) and a GF1 and G1 (both sans lens). The increased bulk is significant, especially bearing in mind that the LX3 isn't one of the slimmest compacts available.
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