I'm not familiar with the details, but it may actually work. The clue is really that the lens must be optimized for the sensor, if the sensor is a small the lens needs to be optimized for large apertures. Michael demonstrated a couple years ago that small sensor cameras can match MF on medium size prints under benevolent conditions: http://www.luminous-landscape.com/reviews/kidding.shtml
Reducing pixel size below 2 microns may make little sense, as I think that's about how long light will diffuse in silicon.
Nokia has a white paper on the phone camera here: http://europe.nokia.com/PRODUCT_METADATA_0/Products/Phones/8000-series/808/Nokia808PureView_Whitepaper.pdf
I just have skimmed trough it, but it seems that they are heavily into binning and it will also be used for digital zoom for filming.
Obviously a small sensor like this will collect fewer photons, so it will not be able to reach very good DR and the image will be noisy. Little doubt that there will some noise reduction going on.
Ultimately, noise is dependent mostly on sensor surface size (really the sum of full well capacity over the sensor area), so a small sensor will always have a disadvantage over larger sensors.
Yes!!! Time to forget medium format, why use it?? Dang, a camera phone with 41MP that should be good in studio for high end fashion shots! It is all about the number of pixels!!! Never mind DSLR, waist of time. My new plan is to buy three Nokia 808 and mount them parallel, thus bringing me near 120MP (less overlap). This is great! Will put money in bank and less weight to carry. For shots that require less than 100MP I can simply demount one of them, point and shoot.
For sure, in comparison the Nikon D800 E stands out as the joke, does it not??? .
Anyone else who will follow??? Please line up!