The NEX is also limited to an APS image circle, they may be able to make it expand out on aspect ratio, as with the M43, but not up to 35mm. So the difference between APS and M43 is small, and for people who shoot on the more telephoto range, as in ~ 35mm equivalence +, the difference is isolated to a subtle increase in resolution and not performance difference and little dof. The M43 still produces a good sized digital resolution. Nikon seems to think there is a future in things even smaller than 4/3.