Let's get this straight, APS-C has an area of 419.17 sq. mm (25.1mmX16.7mm) where u43 has an area of 243.00 sq. mm (18mmX13.5mm). It's obvious that APS-C has a area advantage of almost 2:1. This means if both were using the same technology sensor, APS-C would have almost double the area for pixels. This usually translates into better IQ and better high-ISO performance which is obvious in comparing a d300 to a GH1.
Foveon APS-c = 20.7 x 13.8 mm Foveon CMOS sensor= 285,6 mm2.
Okey: Foveon=Sigma so only used on Sigma cams. Not too many of those
Canon: 22.2 x 14.8 mm= 329 mm2 (so I got that one wrong I see..)
Nikon/Sony: 23.6 x 15.8 mm CMOS sensor = 372.9 mm2.
4/3 sensors: 17.3 x 13.0 mm = 225 mm2
So APS-c does not have twice the size andit depends on which APS-c you compare with.
The newer APS-c chips, at least Canons, go to 16 MPixels. Anyway: the high ISO and DR performance of those cams seems better.
Mind you: Pentax K7 and Samsung NX-10 perform worse when it come to noise.
So it is not clear cut, but in general I agree with you nevertheless.
The u43 camera has the advantage in the area of weight and size. For some reason, the u43 lenses aren't that much cheaper than APS-C lenses nor do they have a great advantage in weight/size (I use Panasonic as an example). Panasonic Lumix G Vario 7-14mm Lens cost $999.95 while the Nikon 10-24mm f/3.5-4.5G ED AF-S DX Zoom-Nikkor Lens costs $789.95 or the Nikon 12-24mm f/4G ED-IF AF-S DX Zoom-Nikkor AF Lens costs $974.95 (all prices quoted are B&H USA prices). Also, Nikon lenses have a 5 year warranty.
The prices are indeed not low and many will agree here. There have been enough arguments about it, so I agree. Size is a different matter. Again, look here:
http://www.luminous-landscape.com/reviews/cameras/panasonic-g1.shtml
At the bottom of the page you see a comparison. The difference with teh D90 is enromous and with the 450D it is still huge.
Pana 7-14 (14-28 35mm eq) f/4 83.1mm x 75mm, 306.17g (no filters possible)
Nikon 12-24 (18-36 35mm eq) f/4 90mm x 82.5mm, 485g
Nikon 10-24 (15-36 35mm eq) f/3.5-4.5 87mm x 82.5mm, 460g
460 gram + a Nikon D3000, the smallest cam at 536 gram= 996 gram
panasonic G2 + 7-14 lens = 425+306= 731 gram. The Nikon is 33% procent heavier. And it is the lightest cam they have. The GF1 weighs less...
With u43, diffusion sets in at f/8 where with APS-C diffusion sets in a f/11 (full frame diffusion sets in at f/16). For some reason, it's very difficult to get f/2.8 zooms for u43 where f/2.8 zooms are plentiful with APS-C. So you can say that the lack of lens diversity argument being applied to the NEX can also be applied to u43 (when compared with Nikon and Canon).
If AF is important, true. Otherwise adapters make it possible to use almost every lens on the m4/3 camera's. Same is true for NEX.
Accessories like flash hasn't tumbled in price either. Have you ever seen a GF1 with a Panasonic DMW-FL500 flash mounted? Also, the GF1 has one serious flaw, when you take a flash picture with the ISO set to auto, the ISO setting will always be 100. I called this in and Panasonic support was able to reproduce this. I sent this in over three months ago. I haven't heard from them since.
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Cliff
The advantage is that size and weight are clearly less than APS-c cams witha mirror and image quality is very good. The lenses in general are good to very good (Panasonic ones). The 7-14 is said to be incredibly small by dreview and very good...
I have used an APS-c and a small one (1000D/XS) and it is clearly bigger, clumsier also..Whether it is too big depends on your personal preference.