I've just received word that Olympus is about to quietly price the E-PL1 kit at US$399, but with a US$100 rebate (Black Friday special). It probably won't be advertised at this price, but your dealer should be able to sell it to you for this price sometime in November. If you really want to see what an m4/3 camera can do, this will be a relatively painless way to do so.
The big drawback to the older E-PL1 kit is autofocus performance. It's decent, but not as snappy as the E-PL3. Things that it doesn't have that the newer models do: better, larger LCD, ISO 6400 support, remote cable release option, 1/4000 shutter speed (E-PL1 is 1/2000), and use of the optional powered accessories. The old kit lens also doesn't support the new add-on lens converters, but that's not a big loss.
Still, I don't know of a compact camera that sells for US$299 that could match what an E-PL1 can do.