Or perhaps they simply underestimated the way the standard would gain traction in the marketplace? M4/3 has gone from niche to mainstream in a fairly short space of time, or at least that's my perception of it.
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Hopefully the price of the E-M5 will drop a bit when underwater cases for it start materializing.
I wouldn't be surprised if Canon's mirrorless system uses the same sensor as the G1x, which can also be called a 4/3rd sensor.
Actually, the G1x is a 1.5" (or 3/2) sensor....
(Source: Canon PowerShot G1 X Review: Digital Photography Review)
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No, the G1X is still a 4/3 sensor--look at the image & specs again.