To many Pixels is counter-productive!

I have no idea whether there are any technical reasons what so ever for Panasonic and Canon to do this. It's more than likely simply marketing; they read the forums as well and know that many people are convinced lower MP count means better IQ no matter what the reality is. I've also never been particularly impressed by the LX or G series cameras, but I doubt that's because I've got "golden eyes". It's more because they compromise in directions I have no desire to go.

Sensors are not yet quite at the point of counting photons individually, but even when they are the precision of counting (and the qe) needs to improve. Smaller photosites will end up a lot more sensitive and precise, and as technology improves the read noise gets lower and lower. I have no idea where the meme that says the opposite comes from; it's never held true in silicon chip design so there is no reason to suspect smaller is not better in sensors as well as in other chips.

Jesper