Panasonic and Olympus have announced a new digital camera format called Micro Four Thirds. Both companies were early adopters of the original Four Thirds format. The size of the Four Thirds sensor is about halfway between point & shoot sensors and C-DSLR sensors.
The new cameras won't have mirrors and prisms and won't be, strictly speaking, SLRs. It will have the same video preview that point & shoots have now. The big, and signifcant, change is the lenses for the new system will placed at half the distance from the sensor as in current DSLRs and the lenses will be greatly reduced in size. Together this means significantly smaller and lighter cameras with nearly the resolution of full-sized DSLRs. At least, this could be the case. See, there are no cameras, lenses, or anything else at the moment for this new system. This is all on paper, so to speak. Maybe we'll see prototypes at Photokina in September this year, but I suspect that it may be a while before we have anything in hand.
Still, seeing that Leica is partnered with Panasonic for many of their digital cameras, this seems like a perfect opportunity for them. Small compact cameras with small compact lenses is just up their alley. At least it seems to me that they should be jumping all over this. It would be a way to be in on the start of a whole new system and format, and they wouldn't be forced to play catch-up with all the other camera companies like Canon and Nikon. They've always been good at creating and playing on their own terms in their own niche, and this is the best chance they've got to do this again. I hope this works out for them.