- people loving "compact" would like to have a compact super-zoom lens on that body. But the large sensor makes it impossible to beat the "bridge/super-zoom"-cameras in compactness
- people loving "high quality" will think: "Why the heck did they leave out a quality ovf and don't built it much smaller than the Oly 420?"
In my humble opinion:
There are people who like both compactness and image quality (not the high quality you mentioned).
No single compact super-zoom camera in current market can match the image quality of the G1 with the 14-150mm super zoom. Besides you can change the lens, for example, taking the 20mm f1.7 for a promenade at night.
I think you've never used an E-420. I've owned both an E-410 and an E-520 and I have to say the OVF is pitifully small (miles behind the D300's). The EVF of the G1 is however reported having the size as a FF camera!! This is the advantage of the EVF, it can be made into any size you want. Plus, 60fps is faster than what a human eye can catch.
I absolutely love the bright 100% OVF of my E-1 but I know the EVF will be the future as it only gets better and better while there's not much left for the OVF to improve.
Just my two cents.. obviously