Will M4/3 die an early death? I'm not sure.
As a recent m4/3 buyer, I thing I can understand Canon's reluctance to enter the mirror-less market. My initial thoughts on an EPL1 are overall positive. The picture quality is very good. At ISO 200 in good light I doubt that you coud tell the difference between M4/3 and Canon's APS-C. It also allows you to experiment with odd lens combinations - I've started to re-use all my old Minolta MC and MD lenses which has given them a new lease on life. (They work surprisingly well).
But there a number of downsides. Battery life , focus speed, and a minor time lag between real life and the image you see in the viewfinder. Also, FF lenses just don't sit well. They're too big. If Canon was to try to enter the market with a camera that rectified these problems, they'd be using a bigger sensor, bigger battery, more processing power. I think they'd still end up with a camera that was T3i sized. In which case, what's the point?
Therefore, I think Canon probably have the right strategy. From a useability perspective, mirrorless has no real benefits over the G12 / S95. Picture quality would be better, but given that it would also have a lot of disadvantages to the lower end DSLRs, why enter the market with a new line that needs marketing, R & D expenditure and support when your current products are better performers?
The sales figures of M4/3 show that they aren't big sellers anyway. Its a very niche market. The only buyers seem to be odd people like myself that just want to play around with new toys, want something small that provides quality photos and use unusual lenses (plus, my camera looks cool!).
Therefore, my prediction is that Canon won't release a mirrorless camera in the near future. As such, M4/3 will survive for a long time to come.