Woah! What a big sensor you have!
This camera marks Canon's first timid step toward what has now become known as the mirrorless camera segment. In it's slightly bulkier-than-a-G12 body it houses a nearly APS-c sized sensor with a 4:3 ratio, which is a dramatic step up from the relatively tiny sensor in the previous G-series bodies. That means that with this camera you can get DSLR image quality out of one of these cameras at any ISO setting, and because the sensor appears to be basically a cut down version of the 18mp sensor that appears all they way up the line to the EOS 7D, you ought to be able to achieve similar image quality. All this from a camera that fits in a jacket pocket, and still retains the highly successful design ethos of the G-series cameras.
So why does it seem so many people in forums are displeased with this camera? Well, it seems to me that a lot of folks wanted something more akin to the Sony NEX7, and I'll admit, I'd like to see something like that come from Canon, but this ain't that camera.
The biggest problem for the G1X is that there are a lot of other cameras on the market, often for less money, and with the potential of interchangeable lenses. Up against those cameras people often worry that they'll be disappointed with a single built-in lens. That maybe true, but for someone like me, the 28-112mm-equivalent f/2.8-5.6 lens covers a lot of the range that I usually work with, and it's certainly of higher optical quality and faster aperture than most kit zoom lenses in that range for entry level DSLRs, so when I look at this camera, I think about how it would fit in with how I shoot, and I think it'd be great for a lot of things.
So who is this camera really for? If you're a super fan of the G-series cameras you'll probably like the G1X. The only thing you might miss using the G1X is that it won't focus as closely as you might be used to with the smaller sensored G-cameras, but you should notice that your pictures look somewhat better, especially as light levels fall. If you're looking for a travel camera that won't force you to compromise on the picture quality of your DSLR, the G1X might be a good replacement if you're shooting with something like a Rebel and a kit lens. If you're a street photographer, the G1 X is probably worth taking a look at, depending on how you work with your cameras. I know Michael Reichmann of Luminous Landscape doesn't care for the fully articulated screen of the G1 X when he's trying to be discreet, but there are other ways of shooting where this doesn't matter.
What don't I like about it? I do think there are better screen designs for this type of camera that would save some space and clean up some of the button layout. I also don't care for the optical viewfinder, and I wish they'd either get rid of it, make it nicer, or replace it with an electronic one. I also don't much care for the scroll wheel on the back of the camera as it's a bit fiddly, but the front dial is pretty nice in comparison. I don't really mind the increase size and weight compared to the other G-series cameras, but it may be a consideration for some people.
So all in all, I find a lot to like about the G1 X, but it might be a tougher call for some people, and certainly, if you're looking at this camera, the nicer Micro Four-Thirds cameras are probably worth a good look as well.