> Ever heard of a thing called competition?

Sure.  Ever heard of a thing called market economics?

> Pentax will probably HAVE TO follow the
> nikon/canon model of aps then full size
> digital sensors in SLRs to stay competitive.

Pentax are already far from competitive in the only area
where a full-frame sensor makes sense; the advanced amateur
and low-end-pro market sector where somebody wants to be
able to use the same lenses on both film and digital bodies.
 
> SLRs will become the pro/advanced amateur
> market only. They will abandon this market
> or produce full frame SLR, they really have no choice...

Sure they do.  Digital is driven solely by pixel count.
Today's 6MP sensor will be a 12MP at the next revision,
and so forth.  Sure, it will always be one step away
from the bleeding edge.  But Pentax have already accepted
that they can't sell cameras at the price that would be
needed to play in that space - hardly anybody would buy a
$7,000 Pentax,  That's Canon's bailiwick, with some small
amount of competition coming from Nikon.

If you're going to be one generation back from the cutting
edge you may as well do it with smaller, lighter, cheaper
systems.   SLRs will continue to be a niche market, just
as they are today.  They sell to the few people who want
the flexibility of interchangeable lenses.  But this has
nothing to do with sensor size.  That's why Canon have
announced their equivalnt to the DA lenses.  But Canon
*are* large enough to have two independent lines of lenses.
 
> Eventually, the only way to effectively
> increase pixel count will be to make
> sensor larger. Otherwise the pixels
> get too small and become insensitive/noisy...

The last several decades of technology improvement say that
you're wrong.  We're not at the level of counting individual
photons yet, so sensors can get smaller without quality loss.

Today the sweet spot gives us 6MP on the smaller sensor.
Sensors can be made larger if you are prepared to pay the
vastly increased cost.  Individual pixels can be smaller,
too; some of the current crop of 5MP cameras have sensors
that are considerably smaller (but are probably only 8-bit
sensors rather than the deeper one used in the *ist-D).

How many pixels do you need, anyway?  A 25-megapixel sensor
the same size as the current one is a couple of generations
away - we'll probably see that at affordable prices inside
five years.

THe one indisputable argument in favour of larger sensors
is that they are less demanding on the lens for resolution.
But it's easier to make high-resolution lenses with smaller
image circles, so even this advantage is somewhat mitigated.

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