Novice question: How does the electronic zoom work in the 14-42mm EZ?

If it is like my 12-50 EZ you have the option for either manual zoom or electronic. Electronic can be smoother, especially for video work but perhaps slower to zoom in and out on the fly. The electronic zoom can also be remotely controlled using the O.I. Share app. If you don't mind the larger form factor I would go from the 14-42mm to the 12-50mm as it is more versatile including a wider a=zoom range, macro mode, and weather sealing. You can pick them up pretty cheaply.

 

My understanding is that the 14-42 EZ does not have a manual zoom option. On the other hand it is very, very small, the smallest you can currently get covering this range.

 

The 14-42 is electric only. The ring acts as a two speed switch: you turn it a little and it zooms slowly, you turn fully and it goes full speed.
In the camera settings you can choose from three different zoom speeds. I set mine on the faster one.
It has manual focus tough.

I prefer manual zooms anyway because you can set it exactly where you want with no effort. With EZ is more like a "zoom in, zoom out, zoom in and settle for a good enough position". Like the zoom on a compact camera. Not a big deal in real life, maybe only if you need some perfect framing from a tripod.

The EZ works, it's good, it's definitely usable, but I'll trade it for a manual zoom one...of the same size of course  

On the PM2 it would make it truly pocketable. If you move to the EM-10 forget about pocketability even with this small lens. In some countries the EM-10 is bundled with the EZ lens.