REVIEW:
I've been a micro four thirds owner since the GF1 came out, but the GM1 is the first Panasonic I've owned since the GM1, and I've been thrilled with it so far. I think it's the best m43 camera for social and family shots, and works very well for sightseeing as well. I also own an Olympus E-P5, which I'm keeping for occasions in which I need a viewfinder or want to use one of the larger lenses, such as the Panasonic 12-35 and 35-100. But I think many people could use the GM1--coupled with the kit lens, the 45, and either the 17 or 20mm pancakes--as their only camera.
When the GM1 came out, I was really intrigued by the size. I ordered it shortly before a trip to Krakow and Vienna for Christmas and New Year. The point of the trip was to visit family but also mix in a bit of sightseeing. Since we wanted to avoid checking any bags (have had too many bad experiences with airlines recently...), I decided to leave the E-P5 and larger lenses at home, and to limit myself with the GM1, the 12-32mm kit lens, and the Oly 17 and 45mm lenses. Here are my impressions.
SIZE:
I find that this is the first truly pocketable camera. I've owned the E-PM2, and the difference in size and weight is significant. When you consider pocketability, you have to take into account not only the footprint of a camera but also its weight. Yes, I could probably squeeze the E-P5 and pancake lens into a large jacket pocket, but I'd be worried about busting the seam unless its heavy duty winter coat. And even then, the coat will feel uncomfortable and unbalanced unless you stick something equally heavy in a pocket on the opposite side. I certainly wouldn't feel comfortable with the E-P5 or even the E-PM2 in a blazer pocket. I wouldn't try squeezing the GM1 into a pair of skinny jeans, but then again I wouldn't want to squeeze an RX100 either. However, I find that I can fit the GM1 with kit lens into corduroy pants pockets and into sports jacket pockets without incurring too much discomfort or worrying about the jacket.


OPERABILITY:
Despite the tiny size of the GM1, I find it quite easy to handle once you master how to use the thumb ring. I probably have average or medium size hands, but haven't had any issue with the touchscreen. I do prefer to shoot with two hands, so I guess I can get away with using a smaller grip with my right hand. I'm a huge fan of the virtual function buttons. I find that the virtual function buttons--in conjunction with the quick menu--makes it easy to avoid the Panasonic menus. I've set the physical function button to toggle the silent mode on and off. As for the virtual buttons, I have them set as follows: FN2 = shutter speed preview, FN3 toggles the horizon levels off and on, FN4 toggles the histogram off and on, FN5 toggles HDR off and on, and FN6 accesses Wi-Fi. I have the direction buttons set to the default settings: up toggles exposure compensation, left toggles AF mode, down toggles bracketing and drive mode, and right toggles white balance. Anything other control I need I access via the quick menu button, which I have customized to my own liking.
12-32mm KIT LENS:
This is really an amazing lens for the size. The lens is sharp for a kit lens, and I love the focal range. I find that m43 kit lenses are generally pretty good. The problem with them is that aside from the 12-50, most lenses start at 14 which is not wide enough for me. The 12mm is really useful for sightseeing and for taking pictures at restaurants.
SILENT MODE:
Aside from the size of the GM1, my favorite thing about it is the silent mode, which I use very frequently. Aside from the stealth value, I find that many kids and pets get put off when you try to take pictures of them in burst mode. In just a couple of seconds, I can fire off 10 or more shots without anyone realizing it. Silent mode is also really handy for sightseeing. Krakow has many beautiful churches, and I appreciated being able to take pictures without disturbing any of the worshipers. Silent mode also allowed me to sneak a few pictures at a performance of The Nutcracker.
Two things to be aware about silent mode: (1) you might occasionally get banding. I've seen many examples of this online, but in the real world, it hasn't been an issue. (2) you can't use flash because flash only works with a mechanical shutter.
FLASH: Although builtin flash is not an ideal solution, it can be handy in some social situations, and it's convenient to have it built in. I find that the flash exposes pretty evenly, and you can alleviate some of the built-in flash look by tilting the flash up, although this only works if you're at relatively close range. Another obvious problem is that if you use built-in flash indoors, the white balance of the flash won't match that of the rest of the room, but this problem isn't unique to the GM1.
iHANDHELD NIGHTSHOT MODE:
This mode works only in JPEG and only when shooting in iA or iA+ mode, but it does a pretty good job in some circumstances at getting a better exposure with less noise. Since it is a type of HDR mode, it only works if your subject isn't moving much. Here's an example of this mode in practice. This mode is best use in iA+ mode because iA+ mode allows you to dial in exposure compensation. I some times use -1 if there are a lot of artificial lights (e.g., a nighttime street scene).
Candlelight shot in Aperture Priority mode (auto ISO with max ISO of 6400), 17mm at 1.8. An ugly, blotchy mess.
Candlelight shot in Handheld Nightshot Mode (iAuto). Same lighting conditions but much nicer result.
PINPOINT AUTOFOCUS MODE:
I've generally been very satisfied with Olympus autofocus. It's fast and it's accurate. However, there are situations (especially when shooting portraits) in which my camera tends to focus on the background rather than the subject. Yes, you can toggle magnification, but I find the picture in picture pinpoint focus mode much easier to use. This autofocus mode combines spot focus with picture-in-picture magnification. Just tap on the eyes and you can make sure they're in focus. The fact that it's picture-in-picture allows you to keep the subject properly framed.
NB: you have the option of adjusting the size of the focus area and the degree of magnification
AUTOFOCUS ACCURACY:
You have a lot of options here: face detect, AF tracking, multi, center, and pinpoint. For tricky subjects, I always use pinpoint, which is like spot metering only with an even smaller spot (plus, you get picture in picture). If the camera is in iA or iA, it will automatically select what it thinks is the best mode.
I think the GM1 has the advantage over the E-P5 and E-PM2 when it comes to full autofocus. In other words, if I put the GM1 in iA and hand it to my wife or some stranger and ask her to take a picture of me, the camera almost always focuses on the right thing, even if the 45mm lens is on and the aperture is set to 1.8. On the Olympus, I had a problem with the camera focusing on something in the background instead. The Olympus works well in the hands of an experienced user who knows how to focus and reframe, but does not work well in the hands of a beginner.
PROS:
+ Very small AND lightweight
+ GREAT silent mode
+ Very handy iHandheld Night Shot mode goes some way toward compensating for lack of IBIS, although it only works with JPEGS, not RAW
+ Very handy kit lens
+ Very flexible package when combined with the 17mm and 45mm lenses.
+ Pinpoint autofocus mode
+ Easier to hand this camera to strangers.
CONS:
- No IBIS. In my trip, I compensated for this by occasionally using handheld nightspot mode, but this mode limits you to shooting in JPEG and iAuto. This can be an issue when trying to shoot at night with a prime. Sure, you can shoot wide open and the ISO performance on the GM1 is very good, but image quality does suffer some.
- Doesn't handle as well with larger lenses. I don't see this as an issue because I also own the E-P5.
- No hotshoe / no possibility of adding a viewfinder or external flash. Again, not an issue for me because I also own a larger camera. But this is a silly criticism--can't think that many people would by this sort of camera if they want to use off camera flash or a viewfinder. That's clearly not the intended market--a typical flash would be larger than the camera itself!
SOME PICTURES:

I used pinpoint AF to make sure the camera focused on the snowmen.
Silent mode in action. Would not have felt comfortable taking this photo without it. The kit lens at 12mm
Shot in Handheld Nightshot Mode (iAuto). Photo quality decent enough for my purposes (would look good in a Blurb photo book), although in this instance I would have gotten better results with the E-P5 thanks to IBIS.
A fun shot with one of the filters.
An indoor portrait with the Olympus 17mm.
Church of Saints Peter and Paul on the left, and St. Andrew on the right.
Shot taken at 32mm with the kit lens from Wawel castle.
Wawel castle
32mm with kit lens.
Church of St. Andrew at dusk, with minor editing in Lightroom. 20mm with kit lens.

Shot in Silent Mode, for obvious reasons! 12mm in iHandheld Nightshot mode.
iHandheld Nightshot mode.


CONCLUSION: more portable than other m43 cameras. Could have made some of these shots with an ordinary compact camera, but would have missed the superior dynamic range and noise performance of the GM1, particularly indoors or outdoors at dusk / twilight.