The 14/2.5 is a fine lens for what it is - an inexpensive, tiny lens. It won't win any awards for its rendering, but I've never had any concerns going out with mounted on any of my bodies. If I had to say something about the rendering, I'd venture that the lens isn't super contrast-y, and you have to work a bit more in post to get your images to pop.
If you're looking strictly for the smallest autofocusing lens you can get, I'd grab one - if you mount it on an E-PL or a GX850 you end up with a camera with similar photographic chops to a Fuji X70, in only a slightly bigger package.
If you're looking for better rendition, I'd look at either the PL 15/1.7 or the Oly 17/1.8 instead. These are both bigger and heavier lenses - about twice as big as the 14/2.5 - but are definitely better. By reputation, the 15/1.7 is sharper than the 17/1.8, but between my 17 and my wife's 15, there isn't anything between them. I personally prefer the rendering of the 17, though I may be biased (I prefer 24mm and 35mm perspectives, don't like 28mm as much).
The PL15 still commands a relatively steep price, but I've started seeing used prices on the 17/1.8 fall a bit (probably due to pressure from the PL15), and while it's more than the Panasonic 14/2.5, it's not extravagantly so if you're lucky.
One lens I would personally avoid for street shooting and family gatherings is the Panasonic 20/1.7. It's a very sharp lens and quite compact, but the AF performance leaves much to be desired. The 15 and 17 are quick with the AF (the 17 is lightning fast), and the 20 could be judiciously called "leisurely." However, it makes for a great still-life lens (museums, posed pictures of family/friends), so may be worth collecting at some point.