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Well I was more referring to the low and mid-range markets which consists of most of the members of this forum. If we go further back than what I mentioned (DSLRs, in 2008), then the cameras were larger again, with those 1/3" cameras such as the DVX100 (2002), which this forum was founded on, and others such as the EX1, HVX200, and before those, Betacams and various broadcast sized cameras. So camera sizes tend to fluctuate over time for different markets, as opposed to going in just one direction (smaller).That is a bit of skewed history, Eric! Perhaps that reflects your personal experience but not if one is to compare the actual timeline of camera design apples to apples.
If we track those individual manufacturers, as I stated, Red now has the Panavision DXL which is basically a Red Weapon in a larger body, and is larger than the Red One, and Arri has the Alexa 65 which is larger than the Alexa. Of course Arri also has the Amira and Mini so as to give options, but that's not truly downsizing as the Mini is primarily meant as a b-cam on high end productions, so it's really more of them giving an option for when you need a smaller camera, as opposed to their A-cam getting smaller.Tracking individual manufacturers who have had multiple generations of digital cinema cameras makes this even more apparent, as each new camera shrinks from the previous generation. Arri D20/21>Alexa,>Amira>Mini is a good example. The REDOne was significantly larger and heavier than their current lineup (with larger sensors to boot)!
then what would the ideal camera size be for various productions/situations?
Well sure, maybe for optical flaws like chromatic aberration and distortion, but a camera won't be able to increase a lens' resolving power or make it have a faster f-stop.You had mentioned earlier that lenses are somewhat exempt from the shrinking camera concept but I think the market is driving a push towards cheaper, smaller lenses, and as a result we are going to see more in-camera correction for optical flaws that will allow for this to happen.
Just as gimbals don't perfectly mimic the organic look of Steadicam, and lens image stabilization (or IBIS on cams like the A7s II) doesn't perfectly mimic using a large camera on the shoulder, I have doubts that in-camera stabilization will ever make other forms of stabilization gear irrelevant. Which isn't really what you were saying. It will be another tool to have, which I'm sure lower end productions will love, but I'm not so sure high end productions will readily adopt it regularly.However--internal and post stabilization is on its way to solving all of this. I fully expect that we will have real-time stabilization that rivals that of the gimbal systems built in to cameras within a few years, a combination of mechanical stabilization of the chip and internal processing. So the form factor may become irrelevant soon enough.