Received some information about a possible Canon competitor to the Olympus/Panasonic micro 4/3 cameras.
Canon is researching such a camera design. There is a lot of close attention being paid to the success or failure of the system. Canon has no immediate plans to introduce such a camera to the marketplace, nor do they have any plans to become part of the micro 4/3 mount.
Canon's interest seems to lie in making a CMOS based APS-C compact camera with a zoom. Not a new system. Leica and Sigma both have APS-C compact cameras now, albeit with a prime lens. Also, Nikon is rumored to perhaps have the same thing coming down their pipeline.
Another issue with a Micro Canon is the need for a 3rd lens format. EF-S and EF lenses would generally be too big on an EP1 sized camera. Do you think Canon really wants to get into that? If they did want a new lens format, medium format would be a far more desirable market.
All is not lost in the quest for a small camera body. You can expect a smaller Rebel down the line with an electronic viewfinder. It won't be as small as the EP1 or GF1, but taking out the mirror box will shrink the size.
No new news on the often spoken about “G”MOS camera.