Nice video there Bob! I felt way too distracted by the actress though. I didn't focus on the camera very much!
The body size of the EP2 is definitely smaller than your typical SLR, although not much smaller or lighter than the Oly E410/420. However, one needs to consider the size of the lens as well. Even with the 17mm pancake lens on the EP2, the size is still larger and heavier than a G11. So it's definitely not pocketable, unless one is wearing some HUGE cargo pants. With the collapsable 14-42 kit lens, I definitely cannot carry the EP2 in any of my pants' pockets (or even coat pocket).
Is the EP2 an everyday companion, bring everywhere you go camera? In my opinion, it is not. That being said, it is much easier having the EP2 hanging around my neck than an E520 or even E620. I think the EP2 makes a great travel camera, if not everyday camera. I'm spending my holidays out of town, and I'm only carrying the EP2 with me. I'm carrying it either around my neck, just holding it in my hands (with a wrist strap), or in my messenger bag. Didn't even bring a point and shoot with me this time around.
My everyday camera nowadays is the Canon S90. I always have that with me (but not on this trip). The EP2 beats the living daylights out of the S90 in terms of image quality though.
Because you also mentioned replacing a SLR, keep in mind that the AF in the EP2 is way too slow to handle non-static subjects such as children and sports. However, if one is not shooting moving subjects, the EP2 can be a SLR replacement. The AF on the Panny GF1 is much faster than the EP2. But probably still not fast enough for sports.