Yep, Sigma has done it! It's called DP1 and it has probably opened up a new market.
http://www.dpreview.com/news/0801/08013108sigmadp1.asp
With dSLR sensor like that, it will easily kill off the rest of compact cameras with very tiny sensor which is about 7-12 times smaller!
http://www.dpreview.com/news/0801/08013108sigmadp1.asp
The DP1 has a sensor around the size of those found in most DLSRs - although it is greatly different in terms of design - and aims to offer equivalent image-quality and specification in a compact format.
With dSLR sensor like that, it will easily kill off the rest of compact cameras with very tiny sensor which is about 7-12 times smaller!
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