In Aug'08 Olympus and Panasonic announced the Micro FourThirds lens system. The objective of this is to bring the larger 4/3rds sensor size and interchangeable lenses into a small (perhaps point and shoot sized) body by eliminating the optical view finder and mirror box. Since the sensor remains the same size existing 4/3rds lenses will be able to be used on these new cameras by an extension tube style adapter. This design will also result in a reduction in size of the lenses, since the rear optics can be much closer to the sensor. About a month later Samsung announced plans for a similar system called Samsung Hybrid based on the larger APS-C sized sensor. I wonder when Canon or Nikon will try the same thing, perhaps introducing a sensor that is smaller than APS-C (yet larger than the typical digicam sensor to reduce noise), this way they can introduce a new line of smaller lenses to sell to a new consumer group. This way your initial $200 digicam purchase gradually builds to $1000 as you buy a few lenses and, when you replace the camera in a few years, you stick with the same company because of the set of lenses you now own.
The Panasonic Lumix G1 (also here on PhotographyBLOG) will be the first of the micro 4/3rds cameras, it will have a flip out 3 inch display (it looks like it is fully articulated and can be turned face in to protect it, yeay! this was a feature I really loved on my Canon G1) with a 460K pixel resolution (which still might not be enough for manual focusing). It has a very high 1.44 million pixel resolution viewfinder (so that might be enough to do manual focusing on, but I found that the 900K pixel view finder on the Minolta A2 was not enough for this so I am expecting this will will not be enough, however Panasonic is using a different technology which effectively stacks the RGB pixels so it might be a much sharper display than the traditional pixel count implies.). It got HDMI output too, so you can inflict painful hours of slide shows on your friends and relatives. Digital Photography Review has a preview of it here.
The Panasonic Lumix DMC-G1 started shipping at the end of Oct'08 (actually a little ahead of schedule) and the first full review of a production model is here.