I own cameras and lenses in both Nikon 1 and Micro 4/3 systems. There's one specific thing that Nikon 1 does noticeably better, and that's continuous tracking AF of rapidly moving subject matter in good lighting. I use it for shooting sports and wildlife. For just about anything else, Micro 4/3 is noticeably better - in terms of value and quality of the lenses and image quality when shooting in low light, as well as a wide choice of good body options with viewfinders and tiltable screens and very customizeable control options.

Basically, the Nikon 1 system is a specialized niche system, whereas the Micro 4/3 system is a highly versatile general purpose system.

I should also add that the current highest end semi-pro-caliber bodies in Micro 4/3, being the Panasonic GH4 and the Olympus OM-D E-M1 (with the latest firmware) are getting pretty competitive in terms of continuous tracking AF performance, but these are not small, and not inexpensive cameras, and the smaller less costly cameras in Micro 4/3 remain less competitive on this particular capability.