They're just getting smaller, aren't they? The GF2 was 19% smaller than the GF1, and there's a good likelihood the GF3 will be even smaller. Due to be announced soon, the GF3's rumored to be almost totally controlled by touchscreen.
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4/3 Rumors has heard that this model doesn't have a hotshoe, and has the same sensor the one used in Panasonic's G3 camera, which is 16MP. While the official Panasonic video has been removed from YouTube now, 4/3 Rumors thankfully acted quickly and got the above screenshots of the camera. [4/3 Rumors]