Andrew, thank you for posting this and I also enjoyed the tram movie too.
I bought the OMD EM-5 primarily for stills although I've started messing around with shooting video (mostly of my 3 year old and family events). I only shoot handheld, and can really appreciate what the IBIS can do.
I love the camera for photography and sometimes the video output comes out looking fantastic however both the 1080p and 720p H.264 crumbles into a blocky mess when there is a lot of movement (for instance leaves on trees moving in the background). I've also tried using the 720p MJPEG settings and while it doesn't get blocky, the output looks more fuzzy or grainy (for lack of a better word).
There are a few other things missing from the camera when in video mode: focus peaking, true 24p/60p, touch screen focusing (works with stills). The live histogram is quite handy, though, and the EVF isn't bad for manual focus while giving you a third point of stabilisation. Hopefully Olympus gets a couple of video engineers in return after trading their IBIS technology with Sony.
Would you mind sharing some of your OMD EM-5 camera settings and any other experiences that could help with getting better video output? What picture setting do you use and do you turn down sharpness, saturation, contrast and then colour grade in post?