I find myself drawn in to arguments on-line from time to time. Recently I posted to a You Tube video that was trying to dismiss micro four-thirds as largely irrelevant and doomed to the dustbin of history. In arguing against my support of m43rds, the video’s author talked about how Sony was shrinking its full frame cameras and also about the perceived quality differences of different formats. Here is my reply with a few minor tweaks…
In terms of Sony's size progress, I assume that you are referring to the camera bodies almost exclusively. With modern electronics and high efficiency batteries, making a body almost as small as the sensor shouldn't really be a huge issue. In fact, the main limiting factor there will probably be heat dissipation, something that Sony has indeed struggled with. Lenses seem to be another matter altogether. One can say that a certain manufacturer has managed to shrink full-frame to almost the size of m43, for example, but that is only true of the body.
My photography is largely centered now on landscape and animal imagery, and I acquire my shots by hiking to the locations that interest me. When I was using Canon gear, a "professional body" and 400mm lens was about all I wanted to carry over a four hour hike, and even then the size of the lens made the setup unwieldy. Since switching to Olympus, I can carry my OM-D E-M1 and three professional zoom lenses with greater ease and comfort than that single Canon lens and body combination. Have I sacrificed anything in results? Not a thing. As stated earlier, I am actually getting better quality results from the Olympus, although also as noted the Olympus body is slightly newer than the Canon.
Now, all other factors being equal, a larger sensor camera will tend to produce cleaner (read as less noisy) images, however, this isn't always the case and isn't always ideal either. Street photographers, for instance, have always often preferred the gritty look that a little grain (noise) introduces into their imagery, especially when leveraging shadowed scenes and monochrome results in low light. The same could be said for styles such as that cinema-noir look that we occasionally see from fashion photographers.
In fact, there are advantages and disadvantages to every format and technology out there. I think it does photographers a disservice to dismiss one option over another as it reduces choice. While I agree that tiny film formats like 110 produced snapshot quality images at best, this was just fine for families that needed to save some money, and carry something that mum could fit in her purse. There were also art photographers who leveraged the specific characteristics of that format to obtain the "look" they wanted. We should remember that photography, like painting or drawing, is an art form. This should recommend that we embrace any tool that gives us creative options rather than dismissing one format or another because the marketers out there want their product to succeed and a competing product to disappear from the shops.
Medium format absolutely has its place and is brilliant in the right circumstances, such as the studio where its weight and size is not an encumbrance but its pixel quantity and light gathering capabilities can excel. 24x36, or so-called "full-frame," is ideal for manufacturers who have learned to exploit the market very well indeed based on its perceived advantages. It also seems to work well for many landscape photographers/wedding photographers who are able to handle the transport issues its lenses create. APS-C and m43 offer almost identical performance parameters, frankly; although, APS-C is marketed as a kind of gateway to full-frame, which means that its adherents often wind up owning big heavy "full-frame" lenses so they loose the weight and size advantage that the format should provide, while only occasionally "moving up" to full-frame anyway.
If you really want to make an argument for what to keep, which I think would be a mistake, then you could say keep the cell phone, keep micro four thirds and keep medium format. Each offers a comprehensive ecosystem that isn't just tied to another format the way that APS-C and "Full-Frame" are. Also, given that medium format can now be made as small in weight and size as full-frame, the arguments most try to apply against m43 could also be applied against full-frame.
Honestly, one should just find what they like and use it.