Earlier quoted context omitted.
> Let's reformulate the question: Why not keep the same enclosure, the same lens assembly, the same mechanical parts and simply swap the 2MP sensor for a 20MP sensor? You do know that a 20MP sensor is significantly (~10 times) larger than a 2MP sensor, right? So the mechanics would probably simply not fit.
Not necessarily, and this is important If they are of the same size, the pixel size - area - will be 10 times smaller for 10x more pixels (or a dimension - length x width - reduction of ~3.1x) Now, noise is bigger if the pixels are smaller. This is one of the ways to radiation harden components: make their features larger. I'm sure a small sensor like those in a compact camera would be subject to a lot of noise. Bigg…
I have a 24 megapixel sensor lying on my desk. Its pixels are 6 micron wide, which is large (but not huge), and the thing is about 4 cm by 3 cm in size. I don't know much about cameras but I think that's about the biggest you can fit in a typical consumer camera body.