If you
shrink the sensor diagonal by half and the focal length of the lens
by half, and double the aperture, you get quadruple the amount of
light hitting each unit area, or the same amount of light hitting
pixels one quarter the size of those on the large sensor.
This works only when the full-well capacity of new small pixel
match the full-well capacity of old big pixel. But, given the same
sensor technology, full-well capacity of pixel is proportional to
size of the pixel. Thus, this theory do not match reality.
Without new technological improvement, full-well capacity of each
pixel in the new sensor will decrease. So, you will have less SNR
even with faster lens. You can't expose long enough as you like,
due to highlight clipping. Thus, size matters.
He did say this though. He said "A larger sensor is about more
Dynamic Range. " It will be at a lower "effective ISO" though.
Ie. ISO 100 on a 35mm sensor is equivalent to ISO 25 on 4/3rds
(which isn't available). So if you use this setting, you should
have 4x the dynamic range (as one would expect from a sensor 4x the
area). Obviously this will depend on the particular sensor
technology.
I think the main point is that 'low noise at high ISO' is quoted as
being the advantage of larger sensors, which is a bit disingenuous:
It's actually 'low noise at low effective ISO' that's the
advantage! (That and making large diameter lenses easier to make)