A great walking around camera; some people compare it to the Leica M series.
1) Resolution is remarkable; enough detail for 13 x 19 prints with plenty of room to spare. I have a Canon T2i (which has an excellent sensor from the 7d) and I find the Panny, which weighs half as much, will take better pictures in a lot of situations. A good place to compare images close-up is the Comparometer on the Imaging Resources site.
2) The 14-42 kit lens is definitely inferior to 14-45 lens that was bundled with the G1 and G2. I'd encourage people to just buy the body and then get the 14-45. The 14-45 performs uncommonly well without any need for post-processing because lens correction is built into the camera software.
3) For HDR enthusiasts the Panny G series is a favorite because it can autobracket 7 exposures (Nikon and Canon only build that into their super-expensive professional DSLRs) One of the improvements in the G3 is a wider autobracketing exposure range.
4) This is a great learning camera because it does a super job on automatic settings. It has all the manual options of a mid-range DSLR but for everyday work it is hard to beat the auto options.