Panasonic today announces the Lumix GF2 – the successor to the Lumix GF1 and the latest addition to the company’s interchangeable lens micro four-thirds system. The new Lumix GF2 sports a slimmer form factor that is 19-percent smaller than its predecessor, integrated flash, 3-inch display, improved video recording capabilities and compatibility with the Panasonic micro four-thirds 3D lens.
Video recording is where the Lumix GF2 improves on its predecessor with supported resolutions up to 1080i at 60fps in AVCHD format – an improvement from the Lumix GF1’s 720p limit – and a new stereo microphone for high-quality audio recording.
Unlike the Lumix GF1, the Lumix GF2 features a touchscreen interface – the shooting mode selection dial is gone and the amount of buttons reduced. Nevertheless, Panasonic kept the aperture and shutter adjustment dial on the back of the camera for quick adjustments with the Lumix GF2.
Other notable features of the Lumix GF2 include a hot shoe use with an external flash or the optional electronic view finder, a Dust Reduction System to prevent dust from sticking on the image sensor and the Panasonic Venus Engine that detects outlines, details and gradation.
Expect availability of the Panasonic Lumix GF2 in January 2011 at an undisclosed price with a choice of 14mm F/2.5 pancake or 14-42mm zoom kit lenses and black, silver, red or white colors.

If I hadn't bought my TZ7, I would definitely grab this!