Very small and comfortable form factor; Very good image quality for its class; New dual video record function; Quick autofocus and good dynamic range.
Lacks an EVF and external mode dial; No hot shoe; JPEG processing at higher ISOs not as good as some competing mid-level models.
Cheap as chips (and with a kit lens!); Quality Sony Exmor Four Thirds sensor; Widely-supported Micro Four Thirds lens mount; Good image quality from raw files; Reasonable burst performance for price; 4K video capture.
Poor ergonomics; Controls too easily bumped; Frustrating user interface; Mediocre JPEG image quality; Heavy-handed noise reduction; Unreliable white balance; No raw+JPEG; Buffer is almost nonexistent; Focus confirmation beep happens while still focusing; AF is poor in low light; Laggy user interface in playback; Extreme crop for 4K video; Kit lenses feel cheap; No bundled flash.