Yes, it's true... you can bounce the little flip up flash on the XE1. The way it pops up seems to lend itself to easily holding it with a finger, pointed at the ceiling... and this is a very welcomed thing. I'm not normally a flash shooter, AT ALL... so I don't even know the best settings for inside flash shots. I just took these quick to show the difference.
NOTE: Sorry about the subject - I didn't have a model that would sit still otherwise. ALSO these are straight out of the camera. If the white balance seems a little "cool" it's because the ceiling in this room is painted a light but stylish shade of teal blue.