Seems like everyone is talking about smaller cameras. Sony, Panasonic, and Olympus are betting heavy on this trend. Adding fuel is the aging boomer that wants a lighter load. A popular compromise is a light load for the travel camera(mirrorless) and the spare medium format takes care of anything that requires biggie big.
If your primary image destination is the internet/flickr-ist, the sensor doesn't matter much within reason. Phone cameras are capable of fine images for this purpose albeit less flexibility. I have a bag full of attachments for my iphone that gives me flexibility but practically I don't carry them. So I use my iphone without attachments most of the time BECAUSE it's always with me.
To answer the the blog title, I think it is a revolution, largely due to Sony. They are making small cameras with big sensors and also making sensors for DSLR's (Nikon D800E) and several medium format cameras(Hassleblad, Pentax, and Phase). Sony is also making adapters to use other camera lenses like Leica on their mirrorless cameras with interchangeable lenses. You may be wondering at this point do I represent Sony? No, I shoot Nikon with a long list of lenses from 600mm to fisheye. I also shoot with the Leica M system. I have used both for a long time. I know the pain of carrying DSLR's and the joy of a light load. The Nikon 800E opened a lot of doors with the crop options from 36.3MP's. This camera is also smaller than the Nikon D4 series and noticably lighter. Put a Nikon 24/1.4 on the D800E and it is a much smaller kit. But not as small as the Sony full frame with an equivalent focal length. Nor is it as flexible, since adapters allow many other brands on Sony bodies. I can use my leica glass on the Sony!
I may sound like I'm an advocate for smaller cameras, but I'm not really. I love my Nikon and use it regularly with a variety of lenses in a variety of situations. However I observe and understand the trend, it makes sense for many people. Keeping in mind the camera doesn't make the image, your eye does.
The leica M is a wonderful camera with a whole bag of attributes, the big one - you have to slow down. Not that you can't shoot fast, it just makes you think more, be more careful, use your eye and brain more. My first leica was an M6, I loved it and never looked back, bought used lenses.........my passion has never slipped. BUT it doesn't fit every situational need, given the manual focus.
I believe smaller cameras are more likely to be carried and used. The more you use whatever camera you have, the better photographer you will become. A new camera will not improve your photography, all cameras can do similar things you just have to make adjustments. I think Sony is changing the game, advancing the small camera footprint with no sensor compromise.
Big DSLR's require a lot of R&D for significant changes, so the models coming out now have incremental improvements. More and more MP's are losing their luster because of file size in handling and the questionable need. So "small" is the next frontier. The market potential appears signifcant but challenged by the phone camera which can not be underestimated if for no other reason than ease of use. My phone camera gets used all the time for things I have never used a Nikon. I take pictures of receipts, pages I want to copy, people I want to remember, phone numbers, etc. I use it all the time for things I never used my DSLR for. I could go on with this but bet you are in the same boat in your use. Not to mention the uses of the phone camera video. You only need to look at the photojournalism impact from phone cameras, the layoffs, use, etc.
Small is here to stay and will likely force the traditional camera companies to embrace the change. My guess sports and wildlife photography will be the last adopters mainly because of equipment lag. Obviously these are guesses, and who knows what will result from the photography explosion going on because of the phone camera. Yes more and more people love photography than ever before. Lots of reasons- ease of use, facebook sharing, flickr, Google+, etc. creating an interest in taking pictures. And on top of this, the learning curve is shorter. With phone cameras, you just press the button and for the seriously interested photographer, the digital feedback allows for a much quicker mastery of subjects like shutter speed, f/stop, lens choice, etc. But if you are reading this, it's old news to you.
The photography explosion is real, the booming interest in photography is real so it stands to reason that technology will continue to advance in photography where a viable market continues to grow. And! If I can get the same quality of images from a smaller footprint, then why not?
Below is a link to a video conversation which compares and discusses the current trend and crop of cameras out there, along with attributes.
Now watch this
Remember, special moments are everywhere but you need a camea.