"Smaller yes, but is it significant. One can't fit a DSLR in the pocket, but not most µ4/3 cameras either."
Excellent point. Incremental differences in size are not necessarily significant; if one can't store one camera in a simpler way than another, it matters little. For me I need to consider how much room a camera takes when packed (e.g. in a rucksack for travel) and also how much room it takes in a bag handy for use. (To be
really handy I keep cameras in hand with a wrist strap.)
My article illustrates that the E-P1 + 20mm is significantly smaller than even the smallest Pentax camera with a compact prime. So long as you forget about addons (flash, EVF) and stick with pancake lenses, packing for a trip and carting gear is a lot easier. True one can't put it into any (reasonable) pocket but that is not a requirement for me.
Unfortunately once one adds on the FA43 or similar it starts to look almost as bulky as a Pentax, due to the size of the adapter. This is a big downside for me.
I know I could get smaller but am not willing to make the required image quality sacrifice. In fact I'd rather be shooting 645!
How the LCD works out for me remains to be seen. Maybe I'll be driven mad by the "telly".
As to your other suggestions I am not sure I follow. The Samsung NX100 is no smaller than MFT so how does it address this problem? The Sony NEX-5 is about 20% smaller and a lot lighter but it's a Sony. I try not to buy anything with that name on it that isn't audio gear... and even then!
Seriously though, the system has next to no lens support and the camera lacks direct parameter control and image stabilisation. With the zoom it's actually bigger than a PEN. And the IQ seems to me to have that typical Sony softness.
However the tilt LCD is a great idea. Add IBIS and reassure me about the IQ. Then I might be interested at $200.