NEX-5 or GF1 ? Which would you suggest?

nasty barrel distortion that is not corrected in camera. Run a search in the NEX forum for "barrell distortion" or "kit lens sucks". Also, if you are going to get rid of the dSLR, you will not be very happy with the NEX as a systems camera, it is very limited-not even a hot shoe! U 4/3 has dozens of native lenses to choose from multilple manufacturers and an unlimited number of adaptable lenses to shoose from.

Lack of ANY viewfinder or ability to use external viewfinder makes this camera, in my opinion, absolutely unusable and out of any competition. If you agree to have camera without EVF, you can buy any P&S for $250-350 and enjoy real pocket size and long super zoom
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MFT in progress