Putting aside issues such as CMOS versus CCD ...
No smaller format can compete with that advantage.
Ray,
I agree that with current technologies, technical considerations strongly suggest that the Kodak FFT CCD sensor of the P25 should be able to give greater dynamic range than the Canon CMOS sensor of slightly less than half its size (area), and the evidence from Michael and other sources is that this is the case.
But since we are comparing a particular pair of sensors that use different technologies, it does not seem fair to dismiss such differences in the comparison.
One end of the dynamic range is set by highlight headroom, usually determined by electron well capacity. This seems to vary by a factor of two or more for pixels of the same size in different technologies, for a potential one stop or more difference in dynamic range. Surprisingly, the highest well capacity I know of is for the very unusual style of CMOS used in the FillFactory sensors of the recent Kodak DSLRs, followed by FFT CCDs (going by Kodak and Dalsa data sheets), and then interline CCD (Kodak and Sony data sheets) and more normal CMOS (though I have less reliable data sheets to back up this last claim, so I am going mostly on my understanding of CMOS design). Fuji's new version of SuperCCD is the dark horse of highlight headroom; will the S3's sensor really be several stops better?
The other end of dynamic range limit involves dark noise levels, which can also vary significantly between sensor types: the FillFactory CMOS sensor loses much of its advantage by having about the highest dark noise levels around; about twice as high as for FFT CCD's at a given pixel pitch, so another one stop difference there. I will avoid comment on the near-religious issue of CMOS vs CCD dark noise levels!