Hi folks - as my trusty Panasonic travel zoom camera is starting to fail, I'm looking to step up in quality. In my adolescence I was relatively heavily into photography, with the full SLR, doing darkroom work, etc and even worked at a camera store. But now I realize that if the camera is not fairly compact - i.e. can fit in a jacket pocket or small "hip holster", I'm not likely to use it. Ideally I'd like a Leica M9, Fuiji X1-pro or other similar camera w/ an APS-C or full size sensor in a compact range finder style body w/ a compact lens. But I'm not willing to spend anywhere near that amount.
SO - looking for a step up from a point & shoot, and think I've decided on an Olympus PL-1, but open to other suggestions. Mostly because it offers a compact size, micro 4/3 sensor, very good jpeg performance, hot shoe + interchangeable lenses and a super low price ($140 body only Amazon). I'm not really concerned about video performance or lots of bells & whistles, though having a built in flash is a plus (one reason I'm considering the PL-1 vs the PM-1). Mostly I shoot landscape / architecture, and portrait, so I don't need a fast camera for sports, but low shutter lag is important. Would prefer not to spend over $200 body only.
Most importantly, looking for suggestions on suitable compact zoom lenses for the above Olympus, whether "native" Olympus or Panasonic lenses, or even DSLR or older "OM" manual focus lenses that can be fitted with an adaptor. My ideal minimum range is 28-110 35mm equivalent. That covers 90% of the range I typically need. I'd prefer not to spend over $200.
So would appreciate advice / comments on the camera + lens recommendation, with a total budget of approx $400 for both.
Also some general questions if folks feel interested in commenting:
1) Is micro 4/3 sensor quality that much better than a well implemented smaller sensor, such as you'd find in a Canon G series, Panasonic LX series or equivalent? A lot of my decision is weighing on the assumption that the larger sensor is very important, which is why I've discarded from consideration Canon G & Panasonic LX series.
I think I'm rarely actually going to print a photo, though sometimes I might display on a large flat screen or maybe even a 100' screen w/ a HD projector in the home theater.
2) Assuming I was willing to spend that much, do Leica branded lenses, whether old or new, really that much better than say a Olympus, Panasonic, etc lens? Until now I've mostly used Nikon, Canon, and Panasonic, so I don't have direct experience.
I'd have to be sure they are really so much better to be paying double to four times the price of comparable lenses from other manufacturers.
Thanks for all the help!