Rich wrote:
Terrible, terrible. You see where ultrazooms have taken formerly
acceptable flagship P&Ss? Old 3-5x zoomed P&S's with 2/3" sensors
were 10x better than this horror. Imagine if they had stuck with
them, and kept improving the processing?

http://www.dpreview.com/reviews/pana...Z18/page14.asp

P&S cameras have improved greatly, even though sensor sizes remain
small. I don't think we are near the limit for what technology can do
with the small sensors, even when they continue to make each element
smaller. Yes, a larger sensor, at whatever technology level, would make
a better image, but would increase cost. I am sure a lot of thought
goes into the decision-making at the camera manufacturer's design facility.