Nothing new. This has always been the arguments thrown around by both camps. I picked Olympus, and Sony DSLR before that, because of IBIS since stabilised fast primes give that edge in low light situations without resorting to adding lighting, and it is something I miss from my current Canon cameras thus leaving the door open to E-P1. Think NEX was claimed to have switched to lens stabilisation due to video. Sony SLT have a bad reputation for sensor overheating in video due to a combination of IBIS and fixed mirror keeping the heat in.

Being realistic, you can have body and lens stabilisation and pick the best one for the situation. You can do that by using the appropriate Panasonic lens on Olympus body.

I think the main reason IBIS isn't available for video shooting on the Olympus must be the horrendous noise it makes. When you think about how the sounds of some lenses focusing and changing apertures make it onto the audio (and they are very quiet by comparison) the "grinding" of the IBIS would render the soundtrack completely useless.

That said I love the IBIS in my E-P1 and would take it over a Panasonic any day because it's so useful for legacy lenses. And if I wanted to do video I could just get a Panasonic lens. Or buy a better, more video oriented (AVCHD) camera. The other option for stabilising video from a PEN is to turn off the cropping IBIS and do it in post with software so that you only crop what's necessary rather than a predetermined amount.

I was surprised how good Pentax K-r's IBIS was for video. I never tried more than 5 mins at a time, but I guess if it was prone to overheat, they would have disabled it with video and someone would complain about this on the web forums.

I see two big problems with OIS. First, lenses with OIS are bigger and more expensive. This is especially an issue with mirrorless systems where size is one of the main advantages. Second, if you like to use primes you are just out of luck as few primes come with OIS.

If you are interested in video, seems like you would have a lens optimized for video to control focusing noise. These lenses are likely to have OIS, so as already mentioned, it just becomes a matter of turning the IBIS off and using the OIS.

To me IBIS is a huge selling point. Maybe I am overemphasizing the importance of IS because I am a novice photographer but I tend to lose a lot of photos when I dont have access to IS when I use primes on my Canon dslr compared to when I use my E-P2. Maybe this will become less important when my technique gets better but till then I am firmly in the IBIS camp.

For what it's worth when I got my PEN I tried my Panasonic 14-140mm which has OIS on my E-P1 switching between OIS (turning off IBIS) and IBIS (turning off OIS). I took 20 shots each of the same object at the same zoom, light, aperture etc to see if there was much of a difference. All the IBIS shots were fine, three of the OIS shots didn't stabilise well enough to be usable. Not a very scientific test really but interesting and made me love IBIS more.

guys i grew up without autofocus and without digital too 

We are showing are age 

IS is not that old

Well isn't that the point though? Because you can use them at slower shutter speeds to "imitate" the faster lens?

And, I may very well move to an Oly body before Fall.

Come over to the dark side - it's fine really and you'll be able to get steadier pics too.

I have an excellent tripod but do not carry it everywhere with me... no kidding!

Hence IBIS is essential and the main reason I chose Olympus over Panasonic. I am so used to the convenience and freedom it allows -- spoiled by Pentax!

I love having my E-P1 on a tripod, especially when its windy, because the weight of my other camera will cause motion blur, but that never happens with the E-P1 and kit lens because of the almost weightlessness.