I can explain the 300 dpi better than that website.
300 dots per inch refers to the screen used on printing presses. Unless you are printing 100% and leaving pure white, you have to use a dot screen to simulate gray. The finer the dot screen the finer the gradation will appear to the eye. When you print in colour the screens have to have different patterns so that the 4 basic colours (cyan, magenta, yellow and black or often called CMYK) can occur next to each other an blend in the eye to make millions of variations.
Likely, there is a limit to how much gradation the eye can distinguish. There is definitely a difference between printers and methods. A colour laser printer will not render at the sharp resolution that you will acheive with a four-colour printing press on high quality paper.
Printing is a balance of variables.
Printers us a 150 dpi screen when printing on newsprint because the paper is so absorbent they bleed and can not render a finer screen. Photos are often adjusted for printing on newsprint so that the shadows do not block-up. Everything between 100% and 90% is often lost unless adjusted for.
300 dpi is the traditionally the finest screen for four colour printing on suitable paper. Finer screens often blocked-up with ink. You can definitely see the different in an off-set printing process between 150 dpi and 300 dpi.
There have been advancements in printing processes. There is a finer screen now that is mostly used for reproduction in artwork books. I think it is either 400 dpi or 500 dpi. They are printing with spot colours that either reproduce certain colours (particularly and orange that yellow and magenta can not reproduce but also some reds and blues). As you know, you can also print black and white with light greys to better represent the tonal range than the screen of dots can.
Now, most people are not using off-set presses. There are colour laser prints, dye-sublimation prints (a film is used with heat bonding for each CMYK colour), and the very common injet printer. Inkjet is a spray process and is acheiving remarkable sharpness these days.
I'm not an expert in these technologies, but my inkjet printer instructions recommend 300 dpi. In general I think photoshop and it's algorithms are better at expanding a low res into a higher res. Photoshop uses a better process to expand pictures rather than just blending neighbouring pixels.
Now for cameras. Remember, megapixel is not the same as megabyte and is not the same as dpi.
I notice a difference between an 8mp file take with my Canon 20D with a good lens and a 8mp point and shoot. As well, now that I have a medium format camera, if I scan a 6x6 negative at equivalent size and I notice a difference. The larger camera seem to be capturing more information: tones, edge contrast, colour depth, sharpness. An epson RD-1 photo taken and resized as an 12 x 18 file will look different than one from a Canon 5D at the same size. I find them a little more flat and a little soft. However, those are not necessarily bad qualities.
Is it enough "quality"? This is the important question and depends on who is judging. If you want to sell your prints to Getty images. Then, no, it's not on their list of acceptable camera. However, RD-1 does a beautiful job of taking pictures and makes a very film-like grain. From an artistic stand-point it can produce satisfactory enlargements. Lomos and Holgas and 50 year old flare prone lenses are capable of taking wonderful images. I'd take a photo from Eugene Smith taken on an RD-1 any day over one from my neighbour with a digital hasselblad.
I understand your nerves about buying a camera that is now out-classed in megapixels by most point and shoot cameras, and an M8 will blast the thing away in terms of quality. Buy it for other reasons, cheaper than an M8 but still lets you get the RF experience and M-mount lenses. Try it for while and sell it if you don't like the results. You can do this with very little loss---the beauty of the used market. Subscribe to Reid's reviews to hear all the thoughtful and good things he has to say about the RD-1. Before the M8, he used to use the RD-1 in conjunction with his 5D for weddings.
Good luck and good light!