Taking up Ray's very valid point about differences between film and digital, and indeed between digital cameras with different sized sensors, I think we need to address the elephant in the room, which is sensor noise, the equivalent of film 'graininess' if you will. The micro 4/3 cameras have a small light sensor onto which a lot of pixels have been crammed. This is a recipe for more noise than is ideal. I have never had the pleasure of working with a full frame digital camera, but I have used the X1.6 crop 10 megapixel Canon EOS 40D extensively for close up work and can compare it with my micro 4/3 Panasonic G1. There is no doubt that the G1 shows more noise over the whole ISO range from 100-800, the difference becoming much more noticeable as ISO is increased. Noise is particularly prominent in unfocused and poorly lit areas. Where I can comfortably work with the 40D at ISO 400 or even 800, I need to keep ISO on the G1 to below 400 and ideally at 100.
That doesn't mean that the G1 is a bad camera or other micro 4/3 cameras are bad. They are light, versatile and are excellent vehicules to give a new lease of life to a whole world of legacy manual focus, manual iris lenses. It does means though, that the appraoch to their use has to take into account a recognition of the noise issue. There are two ways to tackle this, optimal lighting and post processing noise reduction. While I love to use my G1 as a hand held, available light camera, there is no doubt that for close up work it cries out for more light, ideally flash to keep ISO and exposure times low and to avoid shadowed areas on the subject. The G1 is just less tolerant of sub-optimal lighting than the 40D. Trying to pull detail out of shadows with Photoshop tricks will find more noise lurking there too than in a similar X1.6 crop image.
The second way to tackle noise is electronically in post processing. There are many noise reduction programes available, some as Photoshop plug-ins so that they can easily be integrated into Photoshop workflow, some also as stand alone versions. The important characteristics you need in a noise reduction program are the tools to ensure that you get the maximum impact on reducing unwanted noise with the minimum impact on loss of detail, which is the potential downside of all noise reduction programs. I personally use Topaz DeNoise 5 as a plug-in for Photoshop Elements 7. I have no axe to grind for it, I tried several noise reduction programs, found this one suited me best and gave the best noise reduction for the least image degradation, so I bought it. The generous 30 day free trial didn't harm.

I find some degree of noise reduction indispensible in getting the best from my G1 images and I can't see why this would be different for other micro 4/3 cameras.
I apologise if I'm preaching to the converted, or teaching grandmothers to suck eggs, but I think this is an important issue to clarify for people new to the micro 4/3 format.
Leitz Ortholux 1, Zeiss standard, Nikon Diaphot inverted, Canon photographic gear