For hiking I use the Fuji XT1 with the 18-135, giving me a weather resistant system with 28-200mm reach with a weight of just under a kilo.
Very nice .JPG's, a bit better than the allready good .JPG's of Oly.
I carry it in a Lowepro Toploader across my chest, nicely counter balancing my backpack.
This way I have my hands free, the camera is protected but ready to shoot in just a second or two.
The lens is rather big though and sometimes I bring the 28/f2 or the 35mm f1.4 along for size / weight and/or low light situations like photos in a restaurant.
The photo below shows this setup;
My wife and me whilst hiking the West-Highland way from Glasgow to Fort William, earlier this year: