I just mistakenly ordered and received the E-PL1 without the kit lens -- no wonder why it was less expensive. I'm interested in people who just use the Oly 17mm, Panasonic 20mm, and other lenses and do not use the 14-42mm.
Is it OK that I have an EP1 (not EPL1) and don't use the kit??
I've replaced the kit with the 14-150 -- much more versatile lens for outdoors travel. I use the 20/1.7 indoors, and I have a 50mm 2.0 OM macro for macro and manual focus portrait. My last lens is a 30mm 1.7 CCTV lens (also MF), which gives some very trippy results, so it's a "fun" lens.
I'd sell you my kit lens, except I'm saving it. When the EP3 comes out (if it ever comes out), I plan on giving my EP1 + Kit to my daughter.
Do you have a sense for how you shoot? If you do, then get the lens range that matters to you. If you don't then you might want to start with the kit, as it's pretty affordable.
In the digital age, I have been mostly a digicam person, and have tracked lens usage during the last several years. 40mm seems to make up a healthy proportion of shots, so either the 20/1.7 or 17/2.8 might work really well. I seem to like the 90-110 range for which I have the 40-150. I also have a 50/1.4 Zuiko lenses from an OM-1 and the adapter for it.
This makes me think that maybe I should forego the 14-42 and not worry about the return (and additional $80), return the 40-150 instead and then purchase the 14-150. For the time being, I would have the 14-150 and the Zuiko 50/1.4 and then consider the 20/1.7 in the future or when a good used copy becomes available.
People are quite enamored with the 20/1.7 and for good reason but I think the 17/2.8 is sometimes pushed aside because of that. It is a very good lens indeed, and the smallest setup I know for the E-pl1.
I don't actually care for the kit lens. I sold my 14-45 when I had the Olympus E500, sold the 14-42 when I had the E520 and plan to sell this one as well. It seems like a perfectly serviceable lens but I use my legacy lenses instead. Haven't even snapped a single photo with mine. I don't miss it.