I got the GF1 with the 20mm pancake (prime) lens. I cannot speeak highly enough of the quality of the lens and the sensor in this camera. Yes, it was $900, and it is a little (!) heavier than the LX3, and it doesn't have a kit zoom (you can convert your existing legacy zooms with a converter adaptor), and the micro 4/3 zooms are outrageous for an amateur photographer... but I just can't get over the quality to weight ratio.
The sensor is just bigger (and therefore better), and the 20mm lens is incredible, than all the point and shoot cameras out there - not as big as a DSLR, but for the reduced size & weight, I think it is really worth it.
Trail weight for mine is 15oz, plus a 3oz converted climbing chalk bag as camera bag (much lighter and more convenient in/out than anything else I could find.