Like a midrange point-and-shoot, the E-PM1 doesn't have a mode dial; this screen is where you select your shooting mode, and includes the usual set of manual, semimanual, and automatic modes, plus a dedicated movie and Art Filters mode. You don't need to be in the Art Filters mode to access them--you can get to them in the Picture Mode setting, but can't adjust the options there.
The functional shooting display looks like most Olympus cameras. Pressing the OK button brings up the most frequently needed shooting settings for adjustment, and there's a thumb-operated movie record button.
Olympus pioneered the manually collapsible lens system, incorporated into the kit lens. While it's nice that it makes a more compact package that way, the "Lens is locked. Please extend the lens" messages on startup are starting to get old.