I figured it would be good to do a bit of comparison between my the new camera and old one. The G7 is to the left, the E-P3 is to the right

I can really tell a difference. The E-P3, even though it's only got a small number more pixels, has a much bigger sensor, which means that each individual pixel is larger. The G7 feels a bit smear-y by comparison.

And the E-P3 is not that much bigger than the G7 with an appropriate lens, especially given the Panasonic compact pancake zoom and the pancake primes from Olympus and Panasonic.