Recently I came across the Olympus advertisement a new P&S digital camera capable to shoot at high ISO1600...thinking that if this is true, it would be perfect to incorporate the technology in the Olympus DSLR..
It can but the way in which the noise is 'removed' is by means of downsampling.
You must be referring to the mju800 in which a 8MP image is downsampled to 4~5MP (not too sure) to reduce the noise when taking images in high ISO. Not sure if you can consider that as low noise high ISO performance. Better than nothing I guess.
So far, the only P&S digicam capable of high ISO without noise getting too horrible is the Fujifilm F10. But personally, I find the F10's images at high ISO kinda soft and devoid of details, a catch of using high NR algorithm? But guess that for most endusers, better than no usable high ISO.