I don’t about you, but I sure thought that smaller would mean cheaper.  Even though Panasonic kept it under wraps in their press release, it appears that the new Micro Four Thirds system G1 will come in at $799 retail in the US.

Other things you could by for $799:

Canon Rebel XSi w/ 18-55mm IS lens + Manfrotto 190XDB Tripod = $790.89

Nikon D60 w/ 18-55mm AF-S DX VR Lens + Nikon SB-600 = $752.15

Refurbished Canon 30D w/ 18-55mm lens + Canon 75-300mm III lens (also refurb) = $799.90

I understand that Panasonic is the first to market with a Micro Four Thirds camera, but 800 bones is a lot for a camera that doesn’t do anything more than an entry-level DSLR - other than “be smaller.”