Frankly, the G line is dead.
...until the G2 X comes out next year, at any rate. The G1 X is outselling the Nikon 1 on Amazon. Believe it or not, there are people out there that don't want to muck about with changing lenses. Just no one on this forum...
The EOS-M is being introduced at the exact same price as the G1 X -- that alone should be all the confirmation you need of the demise of the G line.
There are like 20 PowerShots all within a few $$ of each other. How does the fact that two different types of cameras have a similar price mean one is going away?
The point is that EOS-M gets you a camera that's the same size as the G1 X with better specs at the same price. And there's nothing that says that you actually have to take the lens off a removable lens camera. How many people own automatic transmission cars with "sport shifting" who never put the car in anything other than park, drive, and reverse?
The EOS-M with the 22mm lens is actually a bit smaller than the G1 X, and decidedly more pocketable. With the new standard zoom, it sticks out a little bit more than does the G1 X, but not by enough to change the pocketability question. So, if you get the EOS-M, all you have to do to switch between a better party camera than the G1 X and a better photographic tool than the G1 X is swap the lens. A lot of people who never would have thought of getting a removable lens camera will realize just that due to Canon's very intelligent move of releasing those two lenses at the same time as the camera...and those are exactly the same people who would otherwise be buying a G1 X.