Forget for a moment "advances in technology" and take a look at the
fundamental laws of physics which tell us
- large pixels are more sensitive than small
- large pixels are less noisy than small
- optics with large apertures (physical size - not f-number) have higher reolution than small
This is not a matter of "technology". It is a matter of quantum mechanics, statistics and classical optics.
Now, combine this with the trivial fact that
- more pixels in any sensor of a given size will shown more fine detail
and it is quite obvious that larger sensors with many larger pixels on large sensors will inevitably produce better pictures
IF you remember to take the optical requirements (larger focal lengths and larger physical apertures) into the equation as well.
Much can be done by improvements in sensor manufacturing technology, but the above mentioned constraints and limitations are real. More can be done in electronics + software together, boosting sensitivity while reducing noise software wise. And you will indeed get "nice pictures" even with smaller sensors+pixels+optics that will serve for most purposes.
But for "true" / "scientific" photography such as macro photography or astrophotography you do not want software to manipulate your image data outside and beyond your own control.
There is a good reason that the Hubble, Keck and similar telescopes have the combined optical + sensor sizes that they have........