You should take a look at the Samsung NX, which meets your qualifications with their f2 30mm pancake lens. This was my thinking exactly - a smaller form camera with an APS-C sensor that has a fast fixed lens that never leaves the camera, and I came thisclose to snapping one (Samsung NX) up. I ended up with the Nikon D5000 and their recently released f1.8/35mm fixed lens (...which never leaves the camera, so I now have a "fixed lens DSLR" to go along with my fixed lens rangefinders) and don't regret it at all, however. After comparing the size between the Oly Pen 4/3 and Nikon in a camera store, I didn't see the smaller size of the Oly "buying" me anything and actually preferred the way the Nikon handled over the 4/3-rds. I don't see either being truly pocketable. In fact, I don't see
any camera being genuinely pocketable - film
or digital, unless it has a collapsible lens along with a pocket-sized body. So a more compact body becomes more of a preference/nice-ity... and from a practical standpoint it has to merely be "small enough" so you're not walking around with a giant conspicuous camera that's an annoyance to carry, so you'll actually walk around and use the thing. Let's say it should be "wrist-strapable"-sized, imo. I looked how DxO labs
http://www.dxomark.com/index.php/eng/DxOMark-Sensor/Camera-rankings rated APS-C DSLRs based on their testing, and the D5000 was the 2nd highest rated camera (Nikon D90 was 1st by a hair) in terms of IQ (including the M8) based on their testing - at least when I last looked, about a month ago. I like using that site to rank digitals because they're the "for-profit" maker of DxO Optics Pro, RAW processing SW, that is optimized to various camera/lens combinations, so it's their business to get these tests right. I assume their rankings are more credible than some amateur jabroney's subjective "take" on things shooting test patterns or who has a bias toward a specific manufacturer, or weights this feature or that higher/lower due to personal preferences. So, this camera gave me a "wrist-strappable"-sized camera (like the 4/3rd's and the EVILS), "as good as it gets for APS-C" (blows away all 4/3rds in DxO testing, expectedly, due to sensor/pixel size) IQ... and, the requisite fast fixed lens in the "normal" focal length range... oh, and a viewfinder and built-in flash at the expense of a "cool looking" form factor at a price (bought refurbed from B&H) a good bit less than the 4/3rds.