I think Panasonic would like to leave MFT behind, that’s why
surely they didn't develop a brand new 25 mp PDAF sensor just to put in 1 camera body?
they have the sensor, they have finally embraced IBIS and they have some of my favourite RF style aesthetics
now all they need to do is join the dots and listen to what pretty much the entire camera community (incl. young content creators) is clamouring for - premium compacts
there is no equal to the m43 compact size when combined with the fantastic compact lenses we have
The S9 is 126 x 74 x 47 mm, 486g without the optional grip
The A7Cii is 124 x 71 x 63 mm, 514g including grip and protruding eyecup for EVF
The OM5 is 125 x 85 x 50mm, 414g including grip and protruding eyecup
The EP7 is 118 x 69 x 38mm, 337g
I prefer centre EVF for larger bodies and the OM5 grip is handy. I can shoot with the GM1 and the Sigma Merrills (no grip and no EVF). With a lens of any size at all a centre EVF makes shooting a more natural experience for me.
The 12-45/4 is pretty compact and also a premium lens. It feels a bit big on the OM5. Of course we have some small primes, but they are a mixed bunch in terms of characteristics and copy variation.
Sony seem to be putting a lot of effort into G primes and zooms, both FF and APSC.

For example
The 20/2.5 G is optically slightly better and £100 cheaper from Wex than the 20/1.4 today. The higher SA of the 20/1.4 is probably a deliberate design choice for smooth background bokeh - so I'd take that as a plus.
You can make endless comparisons between systems, but I'd not make broad generalisations. Actually, I'm happy to have choices between two large and rather different lens catalogues.
Not being a content creator, I'm not sure what they look for in lenses. Maybe it's as variable as it is for other photographers.