Outdated in camera technology now is not an issue. Only gear hogs need the latest and greatest. I have seen awesome photos from a 5mp Minolta digital SLR. the 520 is well ahead of that camera. I actually miss mine. I had a crap load of lenses for it as well. I got suckered into the new gear is better yada yada yada. Now, I am using 2 cameras a Fuji x-s1 for wildlife/outdoor photography, and a Fuji x10 for city/travel photography. Oh, plus my nokia 1020 phone, that puts most point and shoots as well as some older SLRs like the original rebel to a good fight.
Your Olympus has the advantage of the zukio lenses in which you cannot buy a bad lens. All Olympus lenses are amazing in sharpness and image quality.
You can also get some sigma lenses for it too. You will hear a lot of negative from the cork sniffers regarding sigma, however just block them out. I had 4 sigma lenses for my Olympus and all performed wonderfully.
Just some food for thought. Don't buy into the latestest is the greatest idiom out there. Your Olympus camera is a great camera and will serve you wonderfully.