After my initial reaction of “meh” to Panasonic’s first micro-four thirds entry, I was eagerly anticipating Olympus’ announcement (after all they, co-developed the standard, so it stood to reason they would introduce their own camera).
…and with the announcement this morning, I could practically hear the “digital rangefinder” crowd give off a collective “Oooooooo…”
Sure it’s only a prototype, but the body looks exactly like what we’ve all been clamoring for… super compact (looks about the size of a DP-1 in hand) “EVIL” body… and good lord is that a pancake prime on it?!?!? Retro-rangefinder styling is just a bonus 
DPreview has the announcement here along with photos of the prototype… check it out!
This is definetely a much more radical design that the Panasonic Lumix G1. If they get the usability right and the sensor delivers, this would be a tempting camera indeed.
I think the concept is fantastic – I’m sure it will change slightly, but as long as they keep this general idea/form factor instead of making it a “standard slr only a bit smaller” like the G1, I will almost certainly pick one up when they come out. This would totally replace my G9 as a travel/street/compact kit camera… just the thought of that body with the “roadmapped” 20/1.7 prime makes me drool…