I was very surprised by the Electronic View Finder in the Panasonic GH1 when I actually tried one for myself, as it was almost like night and day compared with my first digital camera, the Fuji S602Z Pro.

It is not as good as an optical viewfinder though and I think the will always be a place for that no matter how far the technology advances imho. At the moment most DSLRs have the perfect compromise, an optical viewfinder and live view.
Cameras may well be altering the image for all kind of optical effects in the future, but I don't need to see the effect in real time. Nikon cameras apparently correct for Chromatic Aberration, should there be any, when you take the pic. Do I need to see it happening? I don't think so.
Compact cameras have to make adjustments to the final image, but then they are working on poor lenses or lenses being asked to cover a huge zoom range. Doing all kinds of adjustments in camera to compensate for poor lens design is not a step forward for me. Yes, adjust for lens problems, but start with a good quality lens. Relying on the technology too much will only will lead to poorer lenses. There is a reason lenses are expensive, and that is quality.
You generally get what you pay for with lenses. That hasn't been the case with the four thirds format up to now, and it will be the same with the micro four thirds system too. They are overpriced for what they are, and there is little choice, at least at the moment. Obviously that could change, but they have a lot of different types of lenses to release to try and replace what is available now for the ASP-C and Full Frame cameras.
The main reason for these micro four third cameras have appeared is size it seems. Now while I don't want to carry round something the size of a D3 or a 1DIV, my D300 fits into my hand just fine.

The GH1 on the other hand felt way too small for me, and I'm of average size and (slightly over) weight.
Cost is another reason they have appeared of course. No costly mechanical shutters or prisms. The DSLR companies must be making a profit at the moment, now they just have to decide whether to continue with DSLRs or start working towards the EVIL/ILC design. A wise company would try to do both, but then do Canon, Nikon et al want to go micro four thirds? The big boys seem to be going Full Frame for quality, not a sensor half the size. Maybe an APS-C or Full Frame EVIL/ILC design then? Well then they would probably need to re-design lenses or make adapters for all the current lenses. Nikon can't currently make the lenses people want (and I'm sure other brands have similar holes in their lens line up) so I doubt they could/would design a whole new range. A 300mm lens attached to something the size of an Olympus Pen would be amusing though, and the lens would be slightly bigger still because of the need for an adapter.
There are pros and cons to each type of camera, but for now the history, and range of lenses and accessories coming from that history, may make the DSLR design stay around for a long while yet.
At least there is choice for everyone at the moment, and long may it last. I've found my niche.
It would be interesting to see whether the likes of Nikon and Canon bring out interchangeable lens compacts based on their existing lens mounts - basically a DSLR without the pentaprism and mirror, and without the extra depth and height that goes with them.
A.
Olympus tried it with the
E300 and I don't think it went down well at all. Maybe the timing/technology was wrong, or people wanted the DSLR design. :shrug: