Very good. Compare it with Panasonics GF range and the Olympus-EPL2 – they’re all high-quality ‘mirrorless’ systems, i.e. bigger/more flexible than compacts but smaller than DSLRs.
The Pana/Oly use a different lens system with arguably more choice, but a smaller sensor (albeit not hugely if you shoot 4:3). The Sony has better image quality but less lens choice. This may change in the future(?), but I wouldn’t have much of an idea about that to be honest.
I’d read up on them, then go for which ever has the best deal. Oh, no viewfinder by the way. Like wot he said /\
P.S The small body size is a bit pointless in comparison to the lens size. Oly use a collapsible kit lens which is nice on that principle, and both Pana and Oly have pancake lenses for very good compactness. I hear Pana are getting into the collapsible lens malarkey, but that’s just a rumour at present. The NEX has sold well apparently, so fingers crossed for more lenses.