Are pancake primes extinct ?

No we don;t.

Panasonic already discontinued that pancake vario 14-42 zoom lens.

14 and 20mm.

Olympus only has the 17mm 2.8

Thats 3 left and all of them has a focal length of less than 50mm.

The first goal of m4/3 system was compactness.

Don't tell me about how hard engineering a pancake lens is because canon has the 40mm, pentax has the 40mm, sony has the pancake zoomlens.

There should be no problem design a pancake lens with an aparture of 1.8 or less in m4/3 systems.