A smaller sensor-based CSC, though, will also always be able to operate with a smaller lens versus one based on a larger sensor. I don't see that as evidence that m4/3 has stalled.
As I said, for my particular purposes and preference, I'm not that concerned about smaller. Lighter yes.
I'm just wondering where m4/3 can go from here, other than improving on what is there already. More lenses - great. Slowly improving sensor performance - great. But do you see their version of the Fuji X100, the Sony NEX-7? A camera that gets everybodys attention and creates a real buzz. Both of those cameras have created a huge demand, and yet the people who essentially started this whole CSC thing off are coming out with Pen Lite and GX1.
I don't know about you, but I'm very much convinced that Panasonic, and to a certain extent Olympus, see their future as producing what might be described as "superior compacts". Also I feel that photographers like myself and the people who are involved here don't really figure in their future plans. I may well be wrong but they seem to be have some mass point and shooter upgrader market in their sights and are ignoring, to a large extent, the enthusiast market that championed them so strongly.
The two companies are in different situations. As far as Olympus is concerned, who knows? The situation there could go in any number of directions. If the allegations are true, then the Olympus camera division, often quoted as loss making, could well cease to exist. Whether it gets picked up by another company is anybodys guess.
There's no doubt m4/3 is a quality system, that what attracted me to it in the first place, but I can't say I've got any sense of anticipation any more as to what they might come up with, which is not true of what was going on a while ago.
I don't doubt that they will continue to sell cameras, nor do I doubt that those cameras will do a good job, but certainly speaking for myself, my expectations have been raised by others and I see an innovative and market leading system becoming bogged down in a cycle of recycling and gadgetry to mask the fact that the system isn't really significantly evolving or improving.
When I had a G1 and an E-P1, I always thought that it would be m4/3 that came out with the X100 and NEX-7 type cameras. That retro (ish) upmarket, highly specified, rangefinder styled lightweight DSLR alternative seemed to be almost an inevitable step from Panasonic, with their technology and Olympus with their style. That other companies have gone in that direction while the two originators are just restyling and accessorising is disappointing to me.
However, ultimately it doesn't matter that much. I have no loyalty to any brand an I'm perfectly happy to go elsewhere if it suits me. If Panasonic in particular are wedded to the idea of small at all costs, then fine, I'm sure there are many who will appreciate what they come up with and those who don't will go looking for what they want somewhere else, as I have done.