Hey, guys. It's been shown that at some point, increasing resolution but not sensor size produces diminishing returns (currrent 5MP cameras are noisier and not 25% "better" than 4MP cameras).
Check out DP Review's review of Sony's new 8MP camera:
http://www.dpreview.com/reviews/sonydscf828/page14.asp
"Where the F828 starts to disappoint is image quality, many observers had concerns about the very small pixel pitch of the camera's eight million pixel sensor knowing that it would most likely lead to noisier images but what we weren't prepared for were chromatic aberrations. This came as a surprise especially considering the F828's lens carries not only the Carl Zeiss name but also the 'T*' notation indicating the use of special lens coatings. So in reality the F828's biggest issue becomes chromatic aberrations, with noise a second place..."
Doesn't look pretty. I'd buy an old 3MP D30 (much cheaper), or a used D60 (about the same price) before I bought one of these.
This sensor is going to end up in a lot of cameras (likely to be announced at PMA). I hope they do a better job with it than Sony did.