Agreed. A smaller sensor has a larger DOF.
Per Panny's reasoning, there would be no need for MFT either. The V1 runs circles around the MFT, yet is overshadowed by any P&S.
. . . but you better take all pictures at ISO 100.
Professionals use FF - DOF is but one aspect of a sensor. In all other aspects a larger sensor has more benefits.
Also, MFT is the most 'squarish' format, which hash benefit in lens design, but often means that you crop resolution away.
Will APS-C replace FF? Doubtfull.
Will MFT replace APS-C? Even more doubtfull.
If you compare the f/4 Panny kit with the f/3.5 Sony kit, the Panny is comparable to using the Sony above f/5.6. Sharp? Sure - both are then, but you give up two full stops. Better shoot in daytime only.
If you compare the Panny f/1.4 to the Sony f/1.8, then apertures match, but FOV and DOF are quite different. To reach same FOV, you have to walk backwards, but to reach similar DOF, you have to walk forwards.
Or, simpler said, a fast MFT lens helps in low light ISO selection (same), but not if your goal is creative effects, subject isolation, blurry backgrounds.
Get the S100. Edge to edge sharpness is guaranteed.
Of course, they need a justification for m43.
"I think what's missing at the moment is edge to edge sharpness. If you look at some of the images from an APS-C sized sensor, you can see quite clearly the edge to edge sharpness is just not as good as from Micro Four Thirds."
True, but also a bigger size sensor , at the same technology step will always have a better low light performance.
I think the first problem can be improved using better lenses, micromirrors corrections and PP up to a point, but you can not improve the latest. In the samePanasonic logic, means that FF sensors have no reason to exist, as they are even bigger.
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Cheers,
Henry