EVIL stands for "Electronic Viewfinder, Interchangeable Lenses", the new compact system cameras made by some manufacturers. EVILs are small, but not pocketable cameras with large sensors and a system of lenses and accessories like flashguns and microphones.
The Olympus E-PL1 is Olympus third camera in this market segment. It features a 12 megapixel sensor in four thirds size, so it is sized 17.3x13 mm. Compared to standard compact cameras this is very large, compared to most DSLR the sensor size is a little smaller than on DSLRs.
The Olympus has an internal flashgun, which is a nice feature to have in low-ligh environments. It also has a port to attach more powerful flashguns and other accessories. I got the additional electronic viewfinder for this port, which is great for picture composition and bright environments where the build in screen is hard to read.
Speaking of the screen, the camera has a 2,7 inch screen with a resolution of 230.000 pixels. That is OK, but quite low compared to rival cameras in that class. The additional viewfinder is 1.4 megapixels, so it is easier to compose pictures using it. It mirrors the content of the screen, so no information is lost. If you are used to the controls of your camera, you will not need to switch to the internal screen.
The picture quality is is great. The large sensor is good for high-detailed pictures up to an ISO of 400.
While the PEN will not replace my DSLR, it is a great addition for enthusiasts who want great quality but a small and light camera.