Morgan, it's true that on most feature films with healthy budgets, the camera package is a small % of the total budget. In which case the choice to shoot film or with a fully kitted RED package vs a prosumer camera is not a matter of debate.
But there has been plenty of ultra low budget movies, some of them very successful, that have shot on the dvx100, hvx200 and other DV cameras. Its just a matter of time before we start seeing the 5D in that niche - its advantage being the shallow DOF and interesting image characteristics.
I'm pretty conservative on my camera choices for features - too much is at stake and the speed and demands of shooting two and three week features requires a very reliable no hassle gear and workflow. But there's gunslingers out there who will do it as they want the image qualities and yet have to eek out every drop from their budgets.
Absolutely. The MKii is not just for a one-man show and really has nothing to do with the size of the production. If there is a certain aesthetic or benefit to the camera, it really doesn't matter how large or small it is.