GX1: PZ vs Twin Lens Kit (14-42/pancake)

I'm shooting some unboxing and review videos for youtube, occasional concerts and family vacation photos. I like shooting both video and photos at night. Probably 50/50 video/photos, 50/50 day/night. I've only ever shot with an sd700 and phone cameras. they were depressing and I hope the GX1 will remove the cataract from my videos and photos.

I really like the wide angle and the relatively nice bokeh on the pancake so I'll miss that. The pancakes don't come cheap either so the twin looks like a better value proposition.

Only thing going for the PZ is the smooth digital zoom. Is there any way I can replicate that effect on the 14-42? I'm willing to use software if that'll get me close to the PZ.

I would of course need to add a 50mm and a larger aperture pancake (summilux 20mm DROOL....) at some point in the future, but I'm trying not to spend any more money above and beyond what I'm getting with the kit for at least a year.