The new small 12-32 Kitzoom is remarkably sharp over the entire focal length range, the course is not particularly lush fails, because it is just only a 2.66 Zoom, while many kit lenses otherwise a 3-4x zoom allow. But you get here a little more wide-angle than usual, which I find that you already can get over the lack of more telephoto. The lens is sharpest even at full aperture, it wins by stopping hardly sharpness, from f / 8 already sets a diffraction light, only the vignetting is better with smaller apertures. Sharpness default, it can compete with the best ever kit lenses for the MFT. Although I have no direct comparison for 14-45 more, but it is not in sharp focus far behind the 20 Pancake, or the 25er Leica and can partially keep up with the 12-35 / 2.8. The distortion is corrected electronically (as with most MFT lenses), but at 12mm nevertheless remains a clearly visible distortion. This may in architecture shots be distracting (especially in close-ups), it can still in RAW Converter, or remove by subsequent processing quickly when it is absolutely necessary. A bigger problem I see more in the susceptibility to color fringing. CAs are corrected at least on Panasonic cameras (and also the current Olympus models) of themselves, so they are also available in most (official) RAW converters no problem, but the typical purple-fringing (purple fringing) are in backlight yet quite strong. Again, you can now set up a lot later in the image processing, but it is still worth mentioning, I think. That the lens has no focus ring for manual focus, I do not see as a problem because I had almost never manually focus with AF lenses. The OIS is quite effective, but 100% sharp shooting in 32mm and 1/10 but need some test attempts. By the nature of the OIS it can happen quite in slight camera shake that half of the image is sharp, the other hand, shows ghosting. At the GM1 the 12-32 is largely immune from shutter-shock problems, the new hybrid shutter operates vibration that always sharp images are guaranteed, unless you blurred. I did the 12-32 but also tried on my old GH1 , and as I have at certain time combinations (between 1 / 100-1 / 200) have noticed significantly less sharp images which is most likely caused by the interplay of OIS and shutter vibration. Under the same problem, especially the pz14-42 had to fight, the 12-32 seems in this respect a little less cause problems, but with certain cameras that are known for Shutter-shock problems, could certain shots in combination with the 12- 32 not be 100% sharp.
I use the lens like in connection with the GM1 as Allaround Kombo, where there is not so much a matter of intensity. The flexible focal range, I do not feel so restricted as a Fixbrennweite, but I am nevertheless very compact on the road, so I can have the camera almost always present (with some great difficulty they even fit in a pocket). The results are convincing, and there are hardly any committee, and I would like to mention a peculiarity that I could not really tell me until the very end:
I've tried several copies of this objective, and in almost all I had always struggled with a blurred image right side. I compared my results with many online test photos and have often seen even in this the same problem. If an uncertainty exists, always right, never left, and only the wide angle end. One solution to this problem, I have not found remains. I manage myself now mostly so that I'm doing more of the same recordings, partly re-focusing, or try to focus in particular on the right image side.
Apart from the strange blur problem, I can find nothing but praise about the 12-32. My only wish would be that Panasonic (or Olympus) continue to drive and perfect the development of such a compact lenses. As you can see, it has managed in the new G1X but (with almost identical sensor) to obstruct a 5x zoom similar size, much brighter Canon. Of course you have to remember that the Canon lens is permanently mounted, but even if you know it with a bayonet, it is likely to turn out a lot more compact than what we have been accustomed MFT. A 12-60 / 2.0-4.0 well be in the size of the current 14-42 should technically feasible and would be particularly appealing as a versatile compact kit lens!