And of course people who have shot large format understand that the reasons for shooting a lens that covers 5x7 with a 4x5 include the ability to accomodate greater movement and the fact that there is little size disadvantage between the two formats since the lenses do not require focusing mounts.
Well IMHO the latter is not really important (because the size advantage of lenses for smaller formats has to do with the optics of the lens, not the mechanics of the mount), and thanks to the former you get things like shift adapters for Leica lenses on m4/3.
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the LF analogy is irrelevant and you know it. Do you often shoot your LF camera handheld in low light, or do you try to shove it in a jacket pocket? I dont think so.
I see what you mean, but that argument is just as irrelevant and you know it, since your point was not about low light and jacket pockets. Your point was about how you consider it wasteful to have a bigger image circle than absolutely necessary. And here the LF analogy is actually quite relevant.
I've been shooting a 90 Super Angulon a lot. It covers 5x7 but most of the shots were on 4x5 for a number of reasons - the angle on 5x7 was nice for some situations, but a bit too extreme for many shots, 4x5 was easier to get colour processed, series that were shot on 4x5 etc. By your logic that would be wasteful because a bit of the image circle goes unused. By my logic, however, it would be more wasteful to buy another lens even though that lens might be marginally more optimal. The added shift reserves etc. are just a side benefit, I didn't even shift most of the time.
If you're going to reuse your Leica lens anyway on a different body, the fact that a bit of your lens' image circle hits plastic instead of silicon may be technically wasteful, but IMHO only if people get hooked on technical parameters more than is good for them. By that logic, we might just as well complain that our sensors are rectangular, because if they were circular less of the image circle would go to waste. However, in effect you get a free third-party lens for your new body, and all that people complain about is how their free lens isn't wide or cheap or small enough.