No matter how you look at it, it's smaller than the M and has a similar form factor and ergonomics - just like the X2. That's nice that the family is all similar if you have multiple bodies.
Now assuming the M platform had a zoom, let alone such a nice range of "28-70mm" (equivalent), it would be a similar size and bulk as this. You can't make it faster and maintain a small size - which is perhaps even more of a transgression against the "M aesthetic."
"This one goes to 12,500." A decent top-end on ISO means that this zoom lens isn't all that slow anymore - especially if you consider the camera has a built-in flash.
Say what you will, the X2 made nice pictures, as does this camera from what we've seen so far. I'll take an APS-C sized sensor over smaller ones any day. Okay, it's not full frame... You have to draw the line somewhere, and the zoom takes this into account. No harm, no foul.
I dare say this IS a "Mini M" in many ways...