In summary, while panasonic slowly strink the size, reduce features and hardware such as hotshoe, the image quality, particularly at iso800-3200 has improved for JPEG. Also in JPEG, skin tone also looks much nicer now and video quality is also the best in GF3 as it looks sharper an more vibrant. Certainly the peocessing method has changed and a welcomed one.
AF is also faster, firm amd accurate even in low light or low contrast scenes.
EP3, which i had opportunity to own at the same time with GF3, produces slightly brighter, higher contrast, punchier colors and warmer images even at same exposure settings. Its certainly better built of the 2 but its also bigger and heavier. Video quality also at full HD but suffers quite bad jello effect even with the slightest movement. I suspect probably due to olympus disabled IBIS during video and uses software to stabilise the video, therefore causing unnecessary jello effect. Stereo audio quality however is very good.
Coming to the world fastest AF, its certainly very fast, rivalling the speed of entry level dslrs, ONLY in good light. GF3 seems to have similar af speed though.
But when it comes to low light or low contrast scenes, EP3 af seems to hunt more often before confirming focus. Sometimes it may say its in focus, but may miss it sometimes. On the other hand , GF3 af seldom hunts. It seems more firm and swift, even in low light condiion. Its also always accurate as well.
Image quality comparison.
-iso200-800: both are similar in noise performance. EP3 is sharper, higher contrast, punchier and warmer colors in default jpegs. GF3 is cooler and appears more natural and can get to EP3 similar results by tweaking the jpeg profile and exposure settings. GF3 can also get very sharp images by using its intelligent resolution features which i quite like and now set it to standard all the time as its off by default.
-iso1600-3200: in jpeg, EP3 has lower noise images but at expense of smearing details. GF3 appears noisier but more details are retained. GF3 also appears to retain color information better as well as EP3 starts to get darken and colors are not as vibrant as its lower iso.
In summary, GF3 has certainly become the best performing jpeg and iso quality in all GF series as of now. The improvement is obvious as i dun even shoot at iso800 with GF1/2 previously. With GF3, iso1600 is still useable.
Finally, GF cameras has ability to do bounced flash with its built in flash!!! I try post a few shots soon.