Is Panny G5 JPEG color as good as Oly color now, particularly skin tones?

This is not the issue - I suggest you re-read the entire thread.

Many, like me, do indeed process raw, but in some cases it is quite a lengthy process to get a G3 or G5 raw to look like the colors that olympus gets out of its cameras.Or to deal with some of the weird color cast issues that sometimes dog G3 or G5 raws.

I spent quite a long time in raw trying to get G3 grass, sky, foliage and skin tones looking pleasant to my eye - there was no preset I could just save and then apply en masse to a whole block of images - each inidividual image needed its own tweaking. So while the answer to your question is generally "yes", for 1000s of images shot in different light conditions, on different days, etc, etc this is time consuming and something to consider when thinking about which camera to purchase.

As a comparison, raws from my Sony DSLRs needed much less color tweaking in Lightroom than those from my G3 or G5. Funnily enough I always found the GX1 raws to be the best for color, of all the Panasonic G cameras, until I got a GH3, which is even better. The G5 tended towards yellow grass and foliage a lot of the time in landscapes that I shot.