Normals like me are happy with the "entrylevel" cameras and lenses. For portrait, travel, landscape, a S5ii is basically already premium, and will give same or better results than all those stacked sensor cameras (all of which which have worse DR).
I have an S1R as well as an S5, mainly because I wanted to try the higher res capabilities. But of course, I bought it used for a bargain price (less than a new S5ii). I doubt I'd have paid the sticker price at launch.
But now owning one, I can appreciate the higher build quality and higher quality components. The EVF, shutter, rear-screen mechanism, button feel etc is a definite step up. The build and handling also inspires enormous confidence. In fact, there are times when I think I may pick up a used S1 too to complement my S5. Weight aside, the shooting experience with the S1R is also a step up - it feels better in the hand and it's easier to get the camera to do what you want.
So I think these are things that are also the hallmark of a flagship camera, not just top-class AF etc.
As the L mount has very limited PRO lenses for sports and wildlife, it would make little commercial sense to make a competitor to those cameras.
I wonder what % of the overall camera market is sports and wildlife. Personally I have no interest in either, but I've read that the sort of people who buy this sort of gear are usually older and wealthier types (retired dentists etc) so I expect the margins are better.
And whilst you could argue that L-mount is behind the others in terms of the gear for this market, I personally think it's not that far behind. Sigma's latest big zooms (150-600, 60-600) and their 500mm f5.6 are no slouches and I think the S5ii's AF with some more development work targeted at the sports/wildlife stills requirements could get very close to what the SoNiCan trifecta provide. An updated S1 with the best PDAF that Panasonic can throw at it could (should) be competitive with the Z8/S1/R1.
The "only" flagship that would make sense is a video centric one.
There, what is needed is more related to making it a mini cinema camera. This means
1- Higher Dynamic range, possibly using the lumix dynamic boost
2- raw and raw-like codecs in camera, including all modes being full-readout.
3- low reading speed and higher framerates (4k120p being the sweet spot)
4- quality of life, such as no overheating, great IBIS, easy SSD integration, SSD + charging at the same time, great EVF, great bright multiturn screen...
There is a small gap of time right now in which this camera can come and become a hit.
If you wait too much, a competitor with more established lens lineup and customer base will bring it to market and the chance would be gone...
Arguably Panasonic are already the top brand in video. Not only are the GH7 and S5ii top of the hybrid game, but Panasonic also produce a range of professional-grade video cameras such as the BS1H or the UX-180.
I guess they do need an FF flagship hybrid camera though as well as the GH7/S5ii - an S1H replacement. And I'm sure they'll do that.
But will they also address the stills-mainly market? Is there still a large enough stills market to make it worthwhile? I hope so, even if it means pandering to the BIF types
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(all of this as a discussion, I am more than served with the current cameras, if anything I need a MFT S9 version)
I sort of agree. In the main my Lumix FF gear does all I want. I'd love an S9-sized camera with an EVF, but OTOH, I'm not too dissatisfied with the size of the S5. I also love my S1R and would love to see its successor carry on the same traditional of a high-end, stills-focussed camera. But I appreciate that I'm probably a dying breed.