Are there physical limits to image quality for a given sensor size?

Started May 5, 2013 | Discussions thread
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Are there physical limits to image quality for a given sensor size?
May 5, 2013

In other words, IQ has been steadily improving for any given sensor size, to the point that the E-M5 sensor is better than some of the older APS-C sensors, the RX100 is better than the original four thirds sensors. Is it conceivable that within 5 years we will have a 1/2.3" sensor that offers equal or better dynamic range, sharpness, and color integrity at base ISO and/or at high ISOs as the E-M5 does today? It's true that it wouldn't be a total substitute as you'd lose the ability to have very shallow depth of field but for many people it would eliminate the need for interchangeable lenses entirely.

 Airless's gear list:Airless's gear list
Olympus PEN E-PL5 Olympus M.Zuiko Digital 14-42mm 1:3.5-5.6 II R
Sony RX100
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