deeper thoughts
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The E-PL1, -2, and -3 have the same 12.3mp sensor. Image quality is the same, for a particular lens. With the very latest firmware in all versions, I doubt you will know the difference. The kit lens is much better on the -2 and -3 (same 14-42mm II lens), and if you have the -1 it is worth upgrading to the newer lens. (The newer lens is quieter during video, faster focusing, and does not have the shutter vibration problem at shutter speeds between 1/100th and 1/150th that the original loosy-goosey lens had.)
I upgraded the firmware in my E-PL1 to the latest version and upgraded the lens to a type II. I'm content. Rather than upgrading, I'm buying lenses and ports. But if buying today, I would go with the E-PL2 because of its better kit lens. At this date, mid-December 2011, the E-PL3 is not widely available in the USA, but can be bought from Europe or Japan. So again the E-PL2 is the better option if you are in need of a camera and housing immediately. By January the E-PL3 will be more available if you care to wait.
Cost differences are significant at the level of the camera and housing, but not when you consider the whole system. After you add strobes, tray and arms, focus light etc., you spend perhaps $2500 for the E-PL2 system, or perhaps $2800 for the E-PL3. I reckon this is about half the cost of a tricked out DSLR system, and it's much more compact for traveling.
Hi quick ? for you. I have the 14-42 with the EPL1. I do not shoot much vid but that being said do you still think it would be worth upgrading to the 14-42 2(for pix). thnx alot in adavnce
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