I was once in paradox as well. I'm jumping from PNS camera(Sony DSC-P10 hahaha )
M43 or DSLR straight???

After all I' ve choosen M43 for the following reasons:
1) Size - I do hiking often, so need to carry as light as possible
2) Conveniency- I can move around with the camera without carry a big bag. Everything just in a small sling bag.
3) Simplicity -  Switch to Auto feature, you can ask any of passerby take the photo for you. DSLR may scare them off
4) Moment + Quality image- I guess this is the primary factor. I don't want to miss out any memorial moment (like family gathering,friend gathering..) - I don't want to carry over 1kg gadget to the event but mean time I still manage to take a quality picture(Better still than PNS)
5) Fashion- I like the design, like thel accesories available with M43 like leather casing. Less geeky look but look yaoyeng ( altot not cool as lomo)
6) Casual - Well, I m not prof photo taker and not going to be. The photo just for myself, friends, family not for making money~.
7) Interchangable lens - allow more room to upgrade than PNS and Consumer class camera.
a balance point found between consumer-> M43->Big DSLR 

NEX is probably the worst camera in the market right now... 

There is a focus point but its not a point per say. The conventional DSLR uses phase detection for focusing so there are sensors involved. If you see through the viewfinder you will know what I mean.

Cameras like the PEN/GF-1 uses contrast detect focusing but in my opinion they are not as accurate. The E-PL1's focusing is based on an area selected. And that area isn't small/fine enough especially when you're working with a thin DOF. You just want a small point or plane to be in focus. Say if you want to take picture of dogs. Dogs has long nose. And we tend to point the focus area at the dog's face. But the long nose may fool the sensor to make it focus on it. So you get a picture with only the nose in focus but the dog's eyes are slight out of focus due to the thin DOF.

I have E-P1 (m43) and E-520 (slr)....

Yeah I was wondering the same thing as well. It can't be this bad otherwise night shots would have been very bad. I'm gonna send my camera in next week.
Hey, thanks for trying it out.
I read through an E-PL1 article in dpreview and they found hot pixels on their shots including the official demo shots. But they weren't as bad as mine considering mine appear even on normal shooting at high ISO.

i have a question, to those who have a GF1 with the panasonic 20mm pancake, how do you compensate for the lack of any IS? I mean, if your hands are shaky/trembling, how do prevent the blur? my hands are very shaky so im afraid that it might blur out the pictures. this is especially towards samurai1337, since i know you use this combo (if i'm not mistaken). how did you and the others get past the lack of IS for that combo?

Today i noticed 1 black dot or dead pixel on my screen.
can i claim warranty to repair/replace the lcd?
my gf1 only 1 month old and shutter count less than 500.