This is a simple DIY test of 3 very different cameras, which I did to get a rough idea on how practically noticeable are differences between camera generations and sensor types/sizes.
Panasonic Lumix DMC-GX1
Pentax K10D
Panasonic Lumix DMC-ZS7
2012
$949
Mirrorless, Micro Four Thirds
4/3 (17.3 x 13.0 mm), 16MP
2006
$999
Enthusiast DSLR
APS-C (23.5 x 15.7 mm), 10MP
2010
$399
Typical zoom compact
1/2.33" (6.08 x 4.56 mm), 12MP
N/A
Test was done from "point-and-shooter" perspective, so both Lumix cameras where set to "iAuto" mode and Pentax K10D was in aperture priority mode, with all other settings set to auto. Lumix GX1 and Pentax K10D where shooting RAW and Lumix ZS7 - JPG (can't shoot RAW). Files were imported in Lightroom 4 with default settings, and then exported into JPEG. No additional processing in Lightroom was done, except white balance correction in Low ISO test only. I made 4 different shots with every camera. Shots were made at the same time, from the same position:
Outdoors / Perfect light. Perfect morning light coming from behind and slightly to the right of the camera.
Outdoors / High contrast. Sunny morning with sun quite high, shot in the direction of bright sky. There is some deep shade area and super bright sky area
Outdoors / Rainy day. Dim blend outside light, typical rainy day in Seattle.
Indoors / High ISO. Super low light indoors, shot without flash.
Perfect morning light coming from behind and slightly to the right of the camera. Picture light is well balanced.
Lumix GX1 @ISO 160, F6.3, 1/320
Pentax K10D @ ISO200, F8.0, 1/90
Lumix ZS7 @ISO 80, F4.0, 1/200
Lumix GX1 @ISO160, F5.6, 1/320
Pentax K10D @ISO 200, F8.0, 1/180
Lumix ZS7 @ISO 125, F4.0, 1/200
Raining. Dim blend outside light, typical rainy day in Seattle.
Lumix GX1 @ISO 160, F3.5, 1/125
Pentax K10D @ISO 400, F4.5, 1/180
Lumix ZS7 @ISO 125, F3.3, 1/50
Lumix GX1 @ISO 1600, F3.5, 1/25
Pentax K10D @ ISO 1600, F4.5, 1/20
Lumix ZS7 @ ISO400, F3.3, 1/6
Last generation sensors made great progress in low ISO performance, noise and resolution.
GX1 has noticeable better resolution than K10D, and low ISO performance is amazing.
Physical sensor size still matters.
Lumix ZS1 is clearly the worst performer with less resolution and color degradation in all tests, while technically having higher resolution than Pentax K10D. Lumix GX1, while having best resolution in all tests shows a bit less color depth and saturation than Pentax K10D.
Relative results from shooting in auto modes happened to be consistent with lab sensor results from DXOMark.
Latest generation "advanced enthusiast" compacts with roughly 1/2 of APS-C sensor size are comparable and sometimes better than previous generations enthusiast DSLRs with APS-C sensor. For sensor sizes see wikipedia.