Digital photography

Soo...am thinking about selling my Canon 400D and replacing it with a Canon G12 or similar. I don't use the SLR much at all these days and was thinking that having something smaller and more mobile would be convenient and might make me take more photos, but is the loss of image quality and all the other SLR-specific stuff etc worth it?

What about a Micro four-thirds like the Panasonic GF3 or Olympus EPL1?