It is too expensive and big to feel comfortable dragging it around biking
I don't think so – expensive maybe but definitely not too big, and very solidly built.
The GF1 is a near perfect travel camera.
For 16 days I lived with it strapped to me as I climbed through the valleys of central Nepal up to Annapurna Base Camp at 4,200 meters.
I covered the camera in sweat. I hit it against rocks (unintentionally). The air was often dusty and this dust, by the end of the trip, had worked its way into every nook of the GF1. And yet it performed flawlessly. Never once did it stutter or complain or fail to take an image when I asked it to. And only rarely did it take the wrong image.
The compact combination of Panasonic's GF1 body and the 20mm f1.7 Lumix pancake lens works with you as a traveler. It's a light, sturdy, capable, exceptionally well conceived photography kit that demands to be taken on adventures.
http://craigmod.com/journal/gf1-fieldtest/
Here's a bit of bikey porn.
Its a MuffinTop 5500. A shoulder/courier style.
I really like the look of these for a dedicated photo outing, but I would quite like something that is only just bigger than the camera as well. Been looking at the Jimmy Bo 200 but I'm not sure if it will fit. Which gorillapod have you got, are they as good as they look, and do you use a ball head as well with it? Sorry for all the questions!