When you look at the measurements, you realize they're almost the same width and depth and the new one is just a bit shorter due to the lack of the OVF. But I've gotta say, the new one just LOOKS a lot smaller than the first generation. I'm not sure why, but it does. I've had other situations where cameras (or lenses) that weren't all that different when you saw the numbers on a page really did look a lot different when you held them side by side. I haven't seen the new version of this camera, so I'm just going on photographs of the two, but I have that same strong impression. And I wouldn't be surprised if that's what's going on here... Perception and reality aren't always the same thing, but perception may be at least as important in some respects...
-Ray