Did a little more reading and I think TEBnewyork is spot on, I just didn't understand what he meant. From the DPreview GH1 review where they analyzed the 14-140mm lens. This may be a non-issue, but for a somewhat complex reason:
"One of the more controversial aspects of the Micro Four Thirds system is Panasonic's decision to integrate software lens aberration correction as a fundamental component of the imaging chain (which the company has unfortunately chosen not to publicly document). For most users this is completely transparent - the camera corrects both the viewfinder image 'on the fly', and the JPEG files it records. Also, both the supplied SilkyPix software and industry-standard alternatives such as Adobe Camera Raw convert raw files correctly too (the relevant correction parameters are encoded directly in the raw file, and Adobe has recently revised its DNG open-standard raw format to accommodate them properly too). However users who like to experiment with more obscure raw developers which are unable to apply the requisite corrections will find themselves with highly distorted images, mainly when shooting at wideangle."
So, it appears that while the RAW images are distorted the correction information is encoded into the file and Adobe Camera Raw (used by Lightroom) has the ability to read and correct the files automatically. Maybe the reason why there is no lens setting for the Panasonic m4/3 lenses is that the lens profile does not have to be specified manually, it is automatically detected and corrected?