Panasonic DMC-GX1 16MP Digital Camera with Touchscreen and 14-42mm Lens for $485.00 shipped.  Here is a screenshot for reference.  This camera features a 16.0-megapixel Live MOS sensor, 3" touchscreen, image stabilization, face detection, 1080p video recording, micro four thirds lens mount, and includes a 14-42mm Hybrid lens.  Most places have this camera and lens bundle for more than $650.