I’ve always been pragmatic about my camera gear, and that means compromises, and applying the Pareto principle, ie you get 80% of the quality for 20% of the weight and bulk (well, that is overstating the case for cameras, but I hope you get the idea). I loved my half-frame Pen back in the early 1960s, as it was near the image quality of my FF Pentax S1a in many situations. I have far too many camera systems at present, but my favourites have been the original four thirds system, and now micro four thirds. However, I have to say that although I don’t think that many APS-sized sensor cameras are any better than the current generation of micro four thirds cameras, I am overwhelmed by the images I get from the Fujifilm X-E1, and, as of earlier this week, the X-T1. The Image Quality (IQ), and optics of the cameras and lenses I have used (X-E1 and X-T1, 18-55mm, 55-200mm, and 60mm macro), are stunning. I’m not a pixel peeper, so these observations are subjective. These Fujis are not without some drawbacks (name me a camera that does not have any weaknesses), and the X-T1 seems to have both a tendency for holding it to put it in Menu mode, while the buttons on the back are both far too difficult to press when you want to, yet too easy to press accidentally!
Apart from the fact that you can change ISO between shots, digital has long offered better IQ than film did, even at modest ISO. I’m 68 years old, and have been a keen photographer for over 60 years, and I enthusiastically embrace all the improvements that digital has brought in recent years.