The intent of the xm1 was an entry level camera at a price point to attract others over that could care less about the back to basics of the xp1. Those who grew up w/ dslrs or p&s, I would suspect is what the product managers were aiming at. For those wanting to have more control, the xe1 and xp1 is where these models are aimed at.. To me very well defined product line. For those wanting an xe1 and control ui, at a lower price, this ain't it and I don't believe they ever intended it to be. They put their new consumer grade kit lens on it not the more expensive 18-55..
Look how well a LCD only camera like the Coolpix a or Ricoh grd is selling. Their control UI is not much different then what the xm is. Granted the two cameras are now the most pocketable apsc cameras out there and that is most likely the reason they are selling so well. But my point is their control interface is really not much different...
I suspect the xe1 is going to get cheaper as time goes on.
Gary