[FlamingStuffedTiger]

The GF-1 is definitely a good option for a portable pseudo-DSLR, but it has some downsides you should be aware of: Firstly, the 20mm "Pancake" lens is indeed a good and fast lens, but it has no zoom. You will probably want to add a lens with decent zoom at a later time. However, since the GF-1 lacks built-in IS, your lens selection is severely constrained imo. You would probably have to buy a Panasonic lens (because they have electronic stabilization built into the lens) or compensate by buying faster and more expensive lens if you want to go with a different brand.

The only other camera I can think of that could compete with the Panasonic GF-1 (aside from the E-P1) right now is the Olympus E-PL1. However, it is really tough to say which one is better overall because they seem to fit different needs. On the one hand, the E-PL1 is not as constrained when it comes to lens selection because it has IS in the body. Thus, it should be much cheaper to go the Olympus route since you can pick from a wide variety of cost effective lenses. However, auto-focus (AF) feels MUCH slower on the Olympus micro 4/3s line, at least much slower than a DSLR should be. That said, the picture quality of both cameras are fairly close from what I have read.

In the end it seems to be a matter of what you can live with: If you can live with the slower AF, Olympus looks to be the better pick mainly due to lower cost. But I know some people that would pay the extra for the GF-1's speed without a second thought.