GX7 Question please

I think the GX7 is great. It's still my favorite camera based on all the features that they managed to squeeze into that compact body (as compared to its predecessor, the GX1). The GX85 has several significant improvements, including 4K, 5-axis IBIS, DFD, Dual IS, and a shock-proof shutter. And Panasonic released it at a really good price point. In order to reach that price point, however, Panasonic "downgraded" it in several respects from the GX7. Here are some of the features present in the GX7 as compared to GX85:

Faster flash sync (1/320 with built-in flash, vs. 1/160)
Faster mechanical shutter (1/8000 vs 1/4000)
Tilt EVF
Perhaps better EVF (some who have used both say the GX85 has distortion not present in the GX7)
12-bit e-shutter (vs. 10-bit)
Built-in flash can tilt (I don't think that is true of GX85, but I may be wrong)
Built-in flash can be used as master for off-camera flash
Remote release jack
Metal body (vs. plastic)
Physical switch for AF/MF
Has three custom settings available on the exposure mode dial (vs. one on the GX85)
Comes with an external battery charger (but its easy to buy one with extra aftermarket batteries)

Most buyers now might well think that the improvements in the GX85 outweigh those differences. I won't argue against that. They just weren't enough for me to give up my GX7.

As for the 14-42 v.II, it is a very good lens for a "kit" lens. Sharp, compact (only extends about 1/4" when zoomed), and operates smoothly. The 12-32 is also good, but no manual focus ring, and the "twist to open" requirement before you can shoot requires a bit of an adjustment. The lower priced 12-60 would be a good option if you can get it as part of a kit for an extra $100.