Can the camera be made any smaller?
Unfortunately, no. Making a Giga pixel SLR for example will require very small pixels (0.9 micron) and very high resolution lens (538 lp/mm). Even if this would be possible technically, diffraction will limit the minimum aperture to f-no 2.8 causing the camera to have very shallow depth of field. Having small pixels is also problematic as can be seen in this site http://6mpixel.org/en. The pixel of our camera are 9×9 micron in size, this is twice the the pixel area of SLRs and 20 time larger than the pixel area of cellphone cameras.