ETC in photo mode is better than cropping. Why? Because the metering and focus is more accurate, as well as adjusted shutter speeds for the extended focal length.
I agree that cropping gives more flexibility, but ETC is really useful for making sure the image is usable in the first place.
Ive emailed someone I know who works at Panny Sales (Adam Webber at Panny Europe) to ask him to clarify the release date for the firmware update at http://panasonic.jp/support/global/cs/dsc/download/fts/index.html and he's going to ask their tech guys when its going up, or what the delay is.
I'm guessing Panasonic is waiting for NEX-7 release which has been delayed due to the flooding. Sorta cat and mouse game. If Panasonic releases the firmware too early, Sony could mimic the features, right?