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It's been a confusing couple of days, according to what we've seen on the Japanese sites and read on the Olympus Japan website no mention has been made of the LCD on the E-10 being usable as a viewfinder. However, today Olympus Europe posted their information on the E-10 and E-100RS. Of the E-10's viewfinder they say "By tilting the LCD monitor down 20 or up 90 degrees, a greater viewing angle can be achieved. This is particularly useful when shooting from difficult positions where the SLR viewfinder would be too impractical."
So, does this confirm that the LCD panel can be used as a live viewfinder? It's not yet clear, and if so Olympus would be using some innovative method for both capturing a live video feed for the LCD panel and still maintain an optical path to the viewfinder (could be achieved using a prism).