There are many reasons. The one which I find most important and pisses me off most comes first in the list. I say and repeat: choose a different model! At least the first reason is confirmed by every owner and Olympus Technical Assistants as well. If none of these reasons bother you, see the good side of this camera.
Think about it. You buy a digital camera hoping you can use it as an image input device to your computer, but you can only actually use it as an image input device while it's UNPLUGGED! Now, that's so annoying... everyone hoping to have a digital camera that could be used as a webcam should run from this model... when you plug it in it becomes a dumb external storage device.
If you think you'll save money from developping bad pics, think again. Unless you carry lots of rechargeable batteries with you, you'll burn your savings away with them. With this camera you can take about 10 pics without fiddling with the zoom before the batteries start to be considered down. If you fiddle with the zoom then, one shot and bye bye, that is, supposing you manage to go through the first shot.
You may be thinking, 'bah, so what?', well I have some bad news: first, because the zoom is merely digital, you can only see it happening through the LCD. That means you don't have the same resolution you would if you were looking through the optic viewfinder AAAAND you can't escape from wasting batteries. Not to mention that because its digital you lose picture resolution when you use it.
You need a somewhat lighter surface to make it work. Forget about taking shots at night trusting on the flash if you don't have some white-ish surface to set the focus on first.
...to Start