I'm more confused now than before. With my G3 when I shoot video I can press on the shutter button and take still shots. (it's a great option that my Olympus cameras lack.) Is this 4K still-video stuff the same thing?
It is a totally different thing from your experience on "taking still in the middle of a video recording session".
4K Photo, makes use of e-shutter, video shooting speed of 30 fps, to shoot still image (mostly fast action, e.g. fire surging, balloon bursting, water dropping, Bird in Flight etc), and encodes the frames in video format (end up with a MP4 video file) getting rid of the buffer size etc hardware requirement. Even the entry class GFs can do it nowadays.
Through in-camera 4K Photo extraction features (or by a video playback software like VLC player, MPC player etc) shooters can go through the MP4 file frame by frame, and extract the best into 8Mp jpg photo.
We can of course do similar thing (frame extraction) from regular 4K video. But 4K Photo allows 4:3 or any aspect ratio that the camera supports instead of 16:9 only of video. And we can also use any shutter speed to catch the action that usual 4K video will normally limit to 1/30" or 1/60"...
Better still, 4K Photo can be operated in 2 major styles of operation. 4K Photo and 4K Photo S&S are similar, the first is to hit the shutter, hold it during the recording and release the shutter to stop. S&S is the same as normal video recording, hit shutter 1st time to start and hit shutter again to stop. The most exciting mode is 4K Photo Per-Burst. Camera starts to record from the moment the feature is selected. Images are recorded continuously on rolling basis (new replace old), Only the last 30 frames recorded before the moment of shutter hit, together with further 30 frames upon shutter hit, will be saved to give total 60 frames for shooter to choose. Therefore it can effectively compensate normal human response delay (when we see an incident happened, hit the shutter might already be too late to catch that critical moment of happening). It is something not regular 4K video be design to do.