Verdict

Yes, the Panasonic DMC-G1 is a "New-Generation Digital Interchangeable Lens Camera", a DSL without the reflex and that means without an automatic moving mirror system, but still with the well-known noise of a focal plane shutter. This "New-Generation" has its pros and cons, a bright and customizable viewfinder with almost 100% coverage and live histogram, but rather unsuitable for sports photography and it's very power-hungry.

Nevertheless, the combination of the Advanced AF, the proven dust reduction system and the four-thirds 12-megapixel Live MOS sensor guarantee sharp and (almost) dust-free images with a great resolution even in mid sensitivity. Furthermore, the eye-catching free-angle 3-inch LCD monitor is the key to creative photography.

Basically, the Panasonic DMC-G1 is suitable for all kinds of photography, but it is limited by the lens options of the system. However, due to the small and lightweight body it is especially attractive for light-weight travel photography so the compromises may still be worth it.
Available in three different colors, the Panasonic DMC-G1 is an attractive camera for fashion-conscious beginners. Surprisingly, without video functionality, somewhat expensive in its class and with only two (soon four) available micro-four-thirds lenses, the Panasonic Lumix DMC-G1 can only be recommended to users who are attracted to its niche - less so in general terms.

(*) see the corresponding comments in the technical analysis to put this into context.