New to the format. What should I get for ~£700?

I'm wanting to upgrade from my compact (HX20V) to something that offers better image quality, performance in lower light, and generally something I can invest in to an extent. It looks like micro 4/3 would deliver the level of quality I'm looking at in a manageable size with plenty of long-term options in terms of lens and such, but I'm finding myself quickly lost by all the options.

I've done some scouring through DPR's reviews but I know DPR doesn't cover every camera, plus there're all these new announcements right now. Combined with seeing offputting comments here and there about Panasonic's sensor quality, etc I'm just feeling a little disorientated.

So I was hoping someone could point me in a good direction for a starter kit that'd cost ideally £500 or less, but I can stretch to £700 if there're striking advantages to be had.