its ridiculously good for the money.
In good light it takes better photos than a D5000, which costs loads more. The sensor has a v thin AA filter, making the photos extremely sharp. The only downside of it is the same as the downsides for most* micro four thirds cameras, its focus speed, shot to shot and its low light performance.
For the money you cant get a better camera, no doubt about it.
*the GH2 and G3 are now arguable equal to DSLR's in focus speed, shot to shot and its low light performance.