If Auto ISO is enabled for M mode, it then becomes an auto exposure mode since the camera will now adjust the ISO for what it thinks is the right exposure. Personally, if I'm going into manual mode, it's because I want complete control of all the settings.

Fixed. Just because it is enabled in menu settings doesn't mean you have to use auto ISO. If you select a specific ISO setting yourself, it's fully manual, as you would expect. But if you enable auto ISO in settings, you have the option to let the camera do automatic exposure.

In fact, I was going to suggest this solution to the OP, because it is a great way to get around unexpected/quirky metering:
- enable auto ISO in P/A/S/M
- shoot in M with Auto ISO
- adjust aperture as needed
- adjust ss down (watching auto ISO value change automatically) until you are comfortable with the balance between all three values

I think the camera's "bias" for raising ISO before lowering shutter speed is smart since IBIS doesn't help freeze subject motion. I have to think that Oly expects that OMD users are likely to be shooting people candids in these lighting situations (where higher shutter speeds are important) more often than still life or static scenes and that they programmed the EM5 appropriately.

To those having "problems": shoot in M as described above or choose your own bloody ISO value in A if you don't like the camera-selected settings. Your OMDs aren't broken. They just have a different bias than you. And a different bias than the OP's GF1.

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Oly OMD EM5 | P14mm f2.5 | Σ19mm f2.8 | PL25mm f1.4 | O45mm f1.8 | P14-42 | P45-200
Minolta XG-M | Rokkor-X 35mm f2.8
Canon AE-1 P | 28mm f2.8 S.C. | 50mm f1.8 | Sears 135mm f2.8 | Vivitar Series 1 70-210mm f3.5 Macro

It's not a camera bias it's a user controlled configuration setting for Auto ISO and low flash shutter speed. The problem is that the Olympus documentation does not point out that menu setting F, Slow Limit effects the low flash shutter speed and the low shutter speed limit when Auto ISO is active. The two things are different and it should be possible to set them independently.

If I recall correctly, using aperture priority settings and auto-ISO, my OMD uses as high of ISO necessary to generate shutter speeds of 1/focal length x 2.

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OMD
14/2.5 17/1.8 17/2.8 25/1.4 45/1.8 75/1.8 12-50 14-150
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I strongly suggest that you verify that empirically, because when I just did that using 2 prime lenses (14 & 20mm) both set to f2.8, the shutter speed didn't change. If you do this with the a variable aperture zoom lens, then yes, the shutter speed may change due to the change in aperture.

I'll check when I get home and report back.

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OMD
14/2.5 17/1.8 17/2.8 25/1.4 45/1.8 75/1.8 12-50 14-150
My FlickR!

I see your point but it doesn't have to be all or nothing, we all have different needs in terms of controllability and the selection of shutter speed AND aperture will suit most of us - especially as the high ISO/low noise characteristics of the E-M5 sensor makes Auto ISO a real world option.

David

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E-M5, Leica 14-150mm, ED 7-14mm, ED 75-300mm, EC14, EX25, Lensbaby Scout, FL50R, Metz MS1.
Canon 7D, Canon EF 400mm f5.6 L, Canon 40mm f2.8 STM, Tokina 12-24mm f4, Tokina 100mm f2.8 Macro, Pentax SMC 500mm f4.5
National Geographic Expedition Carbon, Lensmaster RH1 Gimbal head.

"It is better to light a single candle than curse the darkness" - Confucius (551–479 BC)

Thanks everyone for your valuable input, I now have a better understanding and know that there isn't a problem with the camera.