Steve Huff calls the Olympus E-PL1 the "best JPEG camera EVER!"

Here's the quote:

"the Olympus E-Pl1 is not just a dumbed down version of the E-P2 but rather a camera that can stand on its own with even better IQ and possibly the best out of camera JPEGS…EVER!"

Taken from his review of the E-PL1 here.

There are downsides to the camera as well, one of which is the direct record video button that can randomly get nudged to start video recording due to the button being in a very exposed area. Secondly, the restricted shutter speed at 1/200s can be limiting to users who like to shoot with fast lenses.