Another death by iPhone
That said, the market for point and shoots and other low end to medium end cameras got really eviscerated and Olympus couldn't find a way to compete at the higher end.
I am glad Olympus decided to sell M43 cameras, as those are you actually take with you.
The Sigma E-MD I that actually has all of the features you're talking about was almost as big as an A7. The lenses were smaller, but if you don't mind horrible apertures that you have to get on M4/3 you can also have very small and light lenses. Even moreso if you go APS-C.
The lens system also has huge pricing issues. The f2.0 zoom on M4/3 is equivalent to the kit lens on a Sony A7ii. That's a ten times price reduction! My A7 with a pancake lens is small enough that I can actually slip it into my pocket (!)
Compromising image quality for portability at such an extreme extent is not a good idea when smartphone are so plentiful. If sensor size and optics doesn't really matter, then why not take pictures on your phone? They have amazing IBIS, innovative computational photography, and so on.