Hi Oly,
It's true PSE 7.0 is not as full featured but the quality of the RAW files out of the camera are so good that, for the most part, very little tweaking is required.
What I've found (and everyone has their own preference here) is that straight from the camera I open up the RAW files in the edit menu. I typically shoot at ISO 200 so I'm not too concerned about noise which is EXTREMELY low on the G1 from ISO 100 to 400. (Faster lenses either from Panasonic or already existing that you can attach via adapters will allow better performance in this low ISO range.)
First thing I do is stay in 16 bit mode for as long as I can. And unless I'm covering up a mole or something I rarely leave it.
Unless a subject is in shadow in a severely backlit scene (that the camera REALLY exposed for) I leave color temperature alone. Once or twice I had to change my subjects temperature which came in in the low 4280K area or so and bumped it up to obtain a more pleasing warm light.
Next I usually raise the black level to around +16. This seems to work for most general shots. If the scene is particularly bright I may push it to +22 or +32 but I haven't had occasion yet to go higher.
Brightness for general exposed shots is kept at the default +50. If the scene is bright and camera metering tried to make an 18% gray out of it, I find I have to push this up to +90 - +100. But not much higher as things start to blow out at that point unless there's a desired effect.
Everything else is left at default. With the ISO anywhere from 100 to 400, I found little need to adjust luminance and color. If I want to go B&W, I can dial down the Saturation or, open the image and convert to B&W and use one of the settings there.
While I can sharpen the image in RAW I find I prefer to use the unsharp mask which is very effective with G1 images, although, for the most part, I've found the kit lens produces extremely sharp image and from what I can tell additional optics made possible via the adapters are even sharper. When I do find it necessary to sharpen things just a tad, generally I go 80% for general shots and 45% for women. (Not to be sexist but since I've been playing with this camera I've found that women do not like detail revealed by the sharpening with a lens that, to be honest, doesn't need much enhancement to begin with.)
True the full CS has a lot of additional controls but so far with the G1 I find I simply do not need it. (Although now I'm sure having said that I will probably have occasion to need those extra controls!)
Peter