Originally posted by caliscouser f/8 at the long end with a 16Mb 1/2.3" sensor sounds like diffraction city.
You should probably try one before reaching conclusions like this. When I first got my Q-7, {12mb 1/1.7" sensor} I tested it with six different lenses I have that go to 300mm. Using the lens I ultimately chose to "go with", my Sigma 70-300mm, images at f/5.6, f/8, and f/11 were essentially identical (*). In that case, I'm guessing that each stop down used a better part of the lens to make up for any loss due to diffraction, but in general I think many people are entirely too concerned about diffraction.
(*) I looked at my results only after doing all the tests. I regret not trying it at f/16, because I'm not convinced that it would have been much worse.