Earlier quoted context omitted.
1. Noise increases as pixel size increases. So you can't just make the pixels bigger. 2. The 5 megapixel camera on an iPhone 4 is pretty amazing. I wouldn't call it a waste of resources. 3. Displacing MF from high-end camera manufacturers requires tiny pixels. You can shoot pictures for e.g. magazines on a $2,000 D600 today, but in 2003 you would have needed at least $4,000 MF camera plus a $10,000+ scanner. Yes, thi…
It is simply not true that noise increases as pixel size increases. The exact opposite is widely known to be true. See this page, for example: http://firmitas.org/Sensor.html
Photon shot noise increases like the square root of the area of the pixel, but the signal will increase like the area.
In that case, the important quantity ( Signal/Noise ) improves like the square root of the area of each pixel.
If readout isn't shot-noise limited, then the payoff for a larger sensor could be as large as the ratio of the areas between old and new.