The sensor box portion of a "camera" hardly needs to be much bigger than this.
Ultimately, a "camera" type device will not need to be any larger than the Blackmagic URSA Mini. That's a pretty small camera that has a 5-inch screen, XLR audio connectors, a V-Mount battery plate, and places for a handle and an EVF. The "camera" part of it (the sensor box) is really only a very small portion of the whole device. All the rest of the human-interface parts can't really be made any smaller.
I see the operational niche for this camera as being very narrow. You can't hand-hold it, and there's no screaming need for something as tiny as this if you're using a tripod. It would compete with the GoPro for use on quadcopters and in crash-cam situations, but with a full-blown M43 lens on it, it will be heavier, more fragile and more valuable (less expendable) than one of the action cams. It would probably be a good fit on a jib or gimbal, if the app provides easy and reliable remote control of focus. Underwater also sounds plausible, but without a very specialized housing, you won't be changing lenses much, so why not a GoPro there, too.
The picture showing it alongside the various Lumix zoom lenses is interesting. Every one of them overwhelms the size of the camera box itself, so they would be the major factor in determining where it would fit. Only the little pancake lenses really look well proportioned in relation to the overall system.
All in all, other than as a technical exercise, I'm not entirely seeing the point. Don't get me wrong, I have a box full of M43 glass and I'd love to use it on more than my AF100. Quite possibly a lack of imagination on my part, though, so please suggest things I haven't thought about!
At the moment when I am using the Go Pro Black 4K camera for placing it near bird nest, animal dens etc for wildlife filming, the fisheye of the Go Pro is a problem. So I have to shoot at 2.7K. Also, using the Go Pro app, there are challenges in waking up the camera to start record etc. Some of those things this camera promises to remove.
I don't use M4/3 stuff at all. However, this camera, if done well can be used in certain situations. Nevertheless, we have no idea if they are equipped enough to handle the teething problems that often plague electronic manufacturing. Concept is fine, however producing and delivering cameras in large quantities, meeting quality expectations etc is to be seen.
After being scammed by a kickstarter project (triggertrap), I am off kickstarter. If something is available in the shop to buy, then I may evaluate. Nevertheless, if this project works, then it will build up pressure on the existing companies. Competition is good.
Yes, the wildlife photography certainly makes sense. Thanks for mentioning that. But it is another very specialized application. It's questionable whether they can sell these into enough different niches to build a company and stay in business with support, spare parts, upgrades and so forth.
I agree this will be a niche product just like my Sony QX1 APS-C E mount camera . The main reason I purchased the QX1 is because my 6.44" Sony Xperia Z Ultra smartphone has no flash so I could use the pop-up flash in the QX1 when attached to the optional Z Ultra case with mount for the QX1 and compact zoom like the 16-50 PZ or any other E/FE mount lens I have.