Heys, I'm a user of a Canon EOS 500D.
I was caught between the Nikon D5000 before I bought my 500D.
However, I wanted Full HD 1080p recording so I got the 500D (Do note, it's Full HD 1080p is @ 20 FPS).
I don't like those MFT (Micro 4/3) cameras because they're sensors are so small, they don't have good low light capability.
Not to mention that they cost too much (as much as entry-level DSLRs). The price just doesn't justify the IQ (Image Quality).
However, if you want something really small and compact, then, it's the way to go.
Why'd you need such a large LCD?
You should never judge your pics exposure by using the rear LCD.
Most of the time, the pics displayed on the rear LCD don't have the correct exposure.
I never recommended 3rd-party battery grips for fear it may die on me one day if I'm snapping an important event (hence, I'm using 500D + BG-E5).
Freebies that you should bargain for at 8GB SDHC (Class 6) + Tripod + Bag.
Good luck and enjoy shopping.

RRP of Canon EOS 500D Kit Lens is RM3600.
Other shops selling Canon EOS 500D Kit Lens about RM3k.