1/3 rangefinder, 1/3 point & shoot, 1/3 AF SLR -- I can't really decide if that is brilliant or just too much of a compromise.
The biggest selling point of the G2 are the lenses. They are simple wonderfully sharp, contrasty and colorful. Combine that with the size, quality, feel and you have a very powerful package for travel/street/candid portraits etc.
Cons: hard to get over the lack of focus confirmation. other gripes include the small/dim viewfinder, the noisy AF system, and the fact that the lens parks itself at infinity after each photo. Also, I do wish the had some faster lenses, e.g. a 50/1.4
Overall, I think the G2 is indeed a compromise but a very good one. I sold off my other stuff and currently use this one as my only camera system, and I don't think that is the way to go.