This is last (I think) in a series of ponderings:
The recent introduction of 1" sensors has been both a bang (Sony RX100) and a "meh" (Nikon 1 series) in the world camerascenti. Sony is clearly on a roll with their sensors, as the one in the RX100 is a peach. The 28mm f1.8 at the wide end adds to the charm, and pushes the compact point-and-shoot deep into entry-level DSLR and mid-level Micro Four-Thirds territory in terms of both price and image quality. The Internet is filled with gushing praise for the achievement of this camera. Putting a comparatively large sensor in a point-and-shoot body is something that has never been done before the RX100 (at least in our digital age), and people were rightly chuffed at the image quality they could stuff in their pocket. Like any camera, it has its flaws–the lens is slow on the long end, controls are more consumer electronics than camera, etc...–but Sony really caught Panasonic (LX7), Olympus (XZ-2), Canon (G15), and Nikon (P7something or other) off guard. Each, undoubtedly was too far into their product development cycle to change course, so they released the cameras that they had in the pipeline. And pity poor Pentax, just entering the fray with the brassy MX-1, only to find that the party's moved on. It will be interesting to see how the serious compact segment evolves from here, but it's a fair bet that more next generation cameras will be sporting the 1" sensor. That's not to say that the smaller sensor compacts don't have a place; I am enjoying the LX7 immensely, especially at it's lower price point–I thank the Sony RX100 for that. And the smaller sensor of the LX7 enables Panasonic to fit a really fast lens (24-90mm f1.4-2.3 EQ) in a small package; that's likely the reason the sensor in the LX7 is smaller than the sensor in the LX5. Panasonic's not the only one betting on smaller sensors; Pentax has stated publicly that they are fully committed to the tiny Q.