Good on you for trying something different, i lost interest after the image quality comment.. For two reasons 1) i dont think it will happen, every 2 year old and up has already mastered mums phone, and their bigger and heavier than any action camera i think. Ergonomically and for useability i think there's real constraints to avoid when going much smaller in an action camera for the majority of people. If one wanted a tenfold increase in quality you'd just buy a second hand gopro i reckon or other action camera if your not a fan of gopros.
2) I think the amount of people screaming for less sharpening on camera and letting the user deal with it is a very small segment of the market. Which they have been able to ignore so far. Although with the amount of youtubes available on sharpening and grading online, manufactures may have to lift their game soon. In some instances its happening we have the mission1, now theres also 2 other action camera threads on the forum so we should be well catered for.