That statement doesn't make any sense. If what you are trying to say is that you can't get shallow DOF from s16 mm then that's patently untrue, not crazy shallow like FF, but still possible. It all depends on lens size, distance from your subject and aperture.
In fact I bet 95% of people slagging off s16mm sensors have never even worked with the medium........ But you know what they say "got a 5D, you're a DOP".
NIce article! I like your clear stand on the democratisation of film making.
I have worked extensively with the Alexa (Plus, M and Studio) and I think there are a couple of things that I think should be pointed out.
I feel it is a little misleading to say that crews simply stick the Alexa on Pro Res. Firstly it can only record pro res to the SxS cards (4444, 12 bit mind you), which most found more than enough. Hell for TV 422 is enough. Secondly if you do want to record RAW up until the Gemini recorder (which has it's own problems) you had to record to those bloody codex boxes. Suffice to say all this extra crap is an operators worst nightmare.
The other thing not to discount is having a reasonable size VF. Remember how big the 435 VF was especially with an EPL!! DP's used to be able to light from them. The Alexa studios optical VF isn't small either.