I hate these type of form factor cameras, for most things, but I wholeheartedly agree that you don't need large sensor cameras for everything. And a lot of times large sensor cams are a hinderance(especially shooting video with a DSLR). My favorite camera, to this day, is still my 2/3" P2 VariCam with 13x4.5 ENG lens. It's like Ken Rockwell says about how a camera should work, it just gets out of your way and lets you shoot. I went pretty much the entire month of August not picking up a large sensor camera. I shot pretty much 100% with my VariCam and it was SO NICE. People(mostly the young "kids") look down on 2/3" ENG cameras today, but they don't know what they're missing.
Everything has its place. They wouldn't make this camera if there wasn't a market for it.
I've heard a lot of good things about similar Panasonics, though I have never had the pleasure to use them. I used a similar setup Sony HD camera for the same kind of purpose at a different company and it did its job well, though I was more used to the Canon setup. I don't get to run around with cameras at my current gig, so it's been a while.