V1 vs Olympus E-PM1

If you can accept the external viewfinder on the Olympus I recommend you buy that.

I have the V1, I have been disappointed, it has significant flaws, that overall prevent me from recommending it. The fact that Nikon will force consumers to buy a V2 to fix these glaring flaws really annoys me too when it can all be fixed by a firmware update. I don't think it will ever become a system like M4/3 either. I imagine the current target audience will not be buying many additional lens beyond whats included.

Disappointments

Excessive slow shutter speeds chosen result in blurred photos
Will select very high ISO that lead to noise

Stupid ergonomics, physical buttons assigned to minor tasks but deep menu diving for frequently used settings. Multiple buttons to do the same or similar activities.

It is not a not balanced camera it excels in some areas but more likely to get things wrong if you leave it on auto.

Good Points

Nice Color

Nice Photos, notably better than P&S when the camera gets everything right. Better than my Canon S100.
Small size of telephoto zoom, means unobtrusive use at public events..