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Now that ``small size'' is no longer the sole domain of small sensors. APS-C and FF sensor cameras can now be as compact as cameras with compact sensors. ~This kills the MFT~
Besides, there's an ergonomic limit to how small a camera should be. We needn't resort to camera the size of a tiny Minox camera for small sensors to stay relevant.
I think Pentax had an idea in the right direction, but horrible execution. If you can't compete on size, compete on unique styling. So they made the MX-1 compact. Which unfortunately looks like a half-ass MX. Where's the pentaprism?! So they went for unique retro style, but then threw it out the window halfway. They ended up with a product that didn't please any crowd.
They could've made it a compact sensor SLR, that's actually about the same size as the original MX. Usually when companies do retro style, the big sensor forces them to make the bodies HUGE compared to the original designs of old. Autofocus on a lens also adds significant bulk to the lens design. This is where compact sensors got the edge against APS-C and FF. They have smaller lenses even with modern AF design, on account of having normal focal length equivalents at much shorter actual focal lengths and less glass needed to produce a smaller image. For this reason, APS-C and FF will never ever successfully miniaturize their lenses as much as they have with their bodies.
Can you imagine what the MX-1 could've been if it had a TTL optical viewfinder, separate dials for shutter speed, exposure compensation, and ISO? Even with a compact sensor, at this size with a fixed compact zoom, it would've been amazing. Certainly no Fuji mirrorless, but still unique enough to set itself apart. There's so many neat interesting things you can do with compact sensors that would be prohibitive with APS-C and FF.
What are you backseat camera dev ideas?
