I haven't had a chance to watch that Dr. Fossum video yet, but the conclusions being reached from it don't sound like they jive with what he's said in the past. In fact, to quote Dr. Fossum from a forum posting from January '11:
------
"Generally, image quality improves with pixel count, assuming ideal sensor technology. There is only a sweet spot according to a specific technology. The sweet spot is constantly migrating to higher pixel counts. And I am pretty sure that in our life time, there will be gigapixel sensors.
Fill factor is indeed improving and BSI was a big step for improving FF and reducing crosstalk. You can expect pixel sizes less than a micron within 5 years in consumer products and digital biinning of sub-micron pixels to a larger pixel and lower pixel count will give better SNR for the same optics than the equivalent single RGBG kernel size from say 5 or 10 years ago.
All this whining about the megapixel race is a waste of your time and breath. This race results in a rising technology tide that floats all boats, from VGA laptop sensors to DSLRs and astronomical applications. Don't worry, be happy."
------
The returns may be diminishing, especially due to diffraction, but, until we're limited to diffraction at f1.4 or something, I have no problem with the megapixel counts moving up.
As for the Canon 1DX, it's almost a case of marketing to 2007. In the beginning, increasing megapixel counts was desired. Then, in the mid 2000s, everyone started comparing pixels to buckets of water, etc. and decided that more megapixels meant more noise. Now, most are realizing that, if you compare at like image sizes, more megapixels doesn't mean more noise. It only means more noise at the pixel level, which doesn't have much practical application.
In order to consolidate their product line, Canon is making a strange move and marketing to the pixel noise meme of 2007, when, really, I'd imagine that the 1DX is only 18mp because the thing has to shoot at 14fps. I'd personally be pretty PO'd if I was a Canon studio/landscape shooter, because the next round of Sony 135 chips will surely be 30+ megapixels. As a photographer, it just makes more sense for both Canon and Nikon to have 2 pro cameras catered towards different segments, but I think this is a cost cutting move by Canon. If I was a 1D shooter, I'd probably be excited, but, if I was a 1Ds shooter, I'd be disappointed.
Back to the subject at hand, I'm really hoping that the NEX-7 performs as well as the 5N with rangefinder glass, but, seeing preliminary examples, I'm worried that the micro lens design for the smaller pixels isn't optimized well enough, and the corners may have issues, so I may actually stick with the lower megapixel camera, in this case.