I am an extreme novice when it comes to photography. In the past we have always had P&S cameras, albeit good ones, they were still just P&S cameras.
I was drawn to the Pen series by the form factor/picture quality combo. I wanted a camera that was small enough to carry most places that we go and not overwhelming.
The E-PL1 fits the bill, the quality of the shots are amazing. The DOF is great and totally a new concept given our past with only P&S.
I also shoot a lot of video and really want an all in one device. The E-PL1 works great to this end, I have shot a couple of videos and the end results were very good, but most importantly they were easy to upload to youtube and edit using Adobe Premiere, this has not been the case in the past with other camcorders/cameras. As for the 7 minute or so time limit to clips, I have learned over the years that no matter how cool something that I shoot video of seems, more than 2-3 minutes of a given take will ensure that it is never watched again. I plan on shooting quick clips to post for family and friends on youtube.
Being a novice, I also really appreciate the art filters. Corny I know, but I love them. I realize I could get similar effects using Photoshop or another editing program, but I love the fact I can shoot with these effects in real time and see the results on the screen. Plus I have never been one to spend a lot of time editing photos.
Another important aspect of the camera is the low light capabilities, I like shooting inside without a flash and this camera has performed extremely well under these circumstances.
Really my only negative is the AF speed and it seems like I can mitigate that by playing with the settings some, learning a little more about photography and getting the Panny 20mm lens.
I will continue to throw out other thoughts as I learn the ins/outs of the camera, but so far I really love it.