Hello Don,
It all depends on what one wants to get out of photography, for me that is just what I showed with a few grabshots, I like to see my dogs in their environment , so I want the whole image sharp.
I'll try some images with the 20 1.7 open, to throw the background out and see what that looks like.
We have shot many hundreds of dog shots, inside and out and have been very pleased with the G1 and the GF1.
Of course there is much more suitable equipment, to shoot fast moving objects, for us, the panasonics fits the bill.
Not everything is great, I really dislike the EVF and probably will get some Voigtlander optical finders, however, every systems has its trade offs.
I started in photography with everything manual and one 50 mm lens and a light meter , having such a simple system taught us photography, whatever improvements came after, was magic ( sort of ) I have used medium format, Rollei, Mamiya, Fuji, in 35mm Leica M and R , Canon, Nikon, Zeiss etc, shot both professional and as a hobby, now only hobby photography.
I am very happy to leave all of the above mentioned equipment behind and shoot with my little GF1 the 14-15 and the 20 1.7 , (my wife took possession of the G1+140, smart woman), maybe ,maybe I'll get that nice 45 2.8
I wished it was faster, but than it would have to be bigger.
I occasionally think about equipment that I owned in the past, my favorite lenses were the Leicas M and R, the Zeiss lenses and the voigtlanders, what would I do with that equipment today? get the adaptors and strap them on my GF1 ? no way, I now really like auto-focus and I find the Panasonic lenses perfect for my purpose.
Anyway , I think I am a little off topic here, so Don, you are correct, the equipment you have now is perfectly suitable for your purpose and you did get some very nice shots of your dogs.
Best Regards
Peter