Personally I don't see the conversion factor as a problem.
There are shorter focal length lenses available for most manufacturers' systems to work with the smaller sensor size, so you can get the same angle of view.
But I don't think you could say they are "correcting" it in giving you something you're used to with 35mm film, just by giving you a shorter focal length to work with the digital sensor.

After all if people use other film sizes as well as 35mm perhaps they won't think of focal length in quite the same way.


Kodak aren't the only company with ful-frame 35mm size sensors.
Canon do them too, but it's generally on the higher price bodies whoever makes them.
You'll get lower noise, or more megapixels, on a bigger sensor.
Not that mexapixels themselves are the best measure, as I think you're implying.

But it's harder to talk about other things (noise levels, dynamic range, buffer size, speed of power-on/wake from standby, focussing speed, white balance accuracy, sensor speed (ISO) range) and far easier to say 12 is better than 8.