ALL Oly point and shoot cams always need improvement. By far, THE WORST point and shoots I've ever used were Olympus cameras. Olympus has had plenty of time to figure out how bad their cams are and move on and make class killing cams, but haven't. And the new superzoom only has one point of redemption: they didn't make it look like a fake SLR. Outside fo that, it's their same nonsense-pack in features of marginal usability, but fills up a spec sheet, don't work on IQ, don't improve IQ, and sell them. It's much of the same. Even the PEN cameras are not perfect, with some bigger flaws to them, like no AF lamp.
According to this interview (linked on 43rumors) Olympus has no intention of creating an XZ line.
That's funny, because according to the Olympus website it's part of the X Series:
If the sales of the XZ-1 continue the way they have been, it would be foolish to abandon the X line, especially since there is plenty of room for improvement.