I LOVE IT.
I got the panasonic lumix GF1, my friends with full size SLRs are jealous because I can bring mine around in my pocket. With the 17mm 1.7 pancake it comes with you can get some gorgeous shots. The ONLY thing aboud the GF1 is that it lacks in body image stabilization.... so either you get used to shooting without (and this WILL teach you to take better photos) or you buy lenses with stabilization.
ALSO....something to consider.... you can get adapters over ebay for cheap (mine is a fotodiox) that allows you to use vintage lenses like Canon FD and FL primes... to me that is the coolest thing since sliced bread. I have about 8 lenses now and 20 or so filters from my great uncle that up until now were collecting dust... and there is just no comparison in lens quality these days... not a hit of plastic on them
If you doubt the quality you'd get out of one have a look online at flickr in photogroups for micro 4/3 with legacy lenses...insane stuff.
You pay a little more but for portability to me it's worth it...the best camera is the one you have with you.
If you have any questions about it email me, I may be able to give you answers more meaningful than a professional because I'm a beginner myself.