The problem with APS-C is that due to the high pixel density, you need Lglass quality to take advantage of that pixel density, yet the normal kit lenses offered fall far short of the required quality.
Compact cameras have far greater pixel density than APS-C.
I think it is fundamentally flawed to claim that "designing good lenses for high pixel density is hard/expensive". Just like it is fundamentally flawed to claim that "designing good lenses for large image circles is hard/expensive". What seems to be the case is that designing good lenses for high pixel density and large image circle simultaneously (i.e. "many megapixels") is hard.
I dont think that a good lense for a (12MP) 5D classic ought to be all _that_ different in price from that for a good (12MP) m4/3 camera (aside from economy of scale, shipping and such things). The FF lense would have to cover a relatively large image circle with moderate MTF, while the m43 lense would have to cover a smaller image circle with higher MTF.
-h
Take a peek at Jrista's excellent post above...
We have reached the point where the resolving power of high megapixel FF cameras and APS-C cameras are approaching the manufacturing limits of lenses. A series 2 prime chunk of Lglass exceeds this limit, most GOOD Lglass primes are around the limit, and just about everything else below.... with kit glass way below. We are using manufacturing tolerences and polishing techniques where it is getting down to the point where they are talking about layers of atoms being removed....it is almost insane how precise they can be made.....but it comes down to what cost...
To make a lens down to the level of a single layer of atoms would involve price tags of $100,000's.... more than the market will bear... They make them to resolution of tens of atoms and charge in the $1000's. Even at that "sloppy" level, expansion of the glass due to fluctuating temperatures and pressure of mounting it is measureable. There really is a reason why lens calibration is to be done at room temperature.. Even if you managed to make that perfect lens at a reasonable price, get to around f* or so and your limit will be the defraction of light... and as densities increase, that f number drops...
The higher pixel densities of cell phone cameras and p/s cameras has largely become meaningless. The resolution of the sensors far exceeds the glass (or plastic) and improvements in image sharpness actually decrease at a pixel level. Very few people in the mass market understand that a 5 megapixel sensor would out-resolve the lens of thier camera and the merrily buy into the more pixel hysteria... It has more... it must be better...