However, and I know I sound like a broken record here, I don't see how they'll ever overcome the need for real lens glass needed for professional level shooting.
I don't disagree here, as someone who's done work where the physical size of the sensor's pixels matters a lot, and total exposure time is measured in hours. There's also (for me) a nicety of being able to unplug from the internet to do shooting, and get an experience closer to the F-1 I did spend time with in middle school when I did take photography classes.
It’s just more that I also don’t think the mass market wants or needs the sort of things I want, much like SLRs weren’t the tool of choice for
most photography in the film era. And that’s okay.
I tend to agree that there will be photographic needs for which DSLRs or their equivalent will be needed. (I hesitate to say "always" because that's a dangerous adverb when it comes to technology.) But those situations will continue to become fewer over time.
Physics kinda gets in the way though. Things were simpler with film as everyone’s “sensor” was roughly the same size due to standardization on 35mm film. So it was the quality of the film, and the functionality of the camera that set things apart. Today’s simpler cameras come with real physical limitations that change things from the film days.
Any sensor improvements I make for phones can (and in the case of Sony, will) be applied to larger sensors as well, keeping them ahead. Certain sources of noise like shot noise, would still favor larger sensors with larger pixels even if the sensors could capture 100% of all photons that hit them. Electronic noise due to less heat dissipation is also a factor. In terms of glass, that 13mm equivalent lens on the iPhone is ~2mm in practice, and so relies on more cutting edge processes to build those lens assemblies, but again, there’s nothing saying those advances can’t help make more compact lenses for larger cameras, or improve some facet of them further. Depth of field is a function of focal length, so while those 2-5mm lenses are great for portability, it does mean you need addons to get thinner depth of field, and it starts looking more and more like a mirrorless camera as you start to add that on.
Flexibility is hard to completely replace, as those larger sensors give me more flexibility for cropping to get the right composition with their higher pixel counts, being able to go from extreme low light long exposure to deep depth of field landscape work.
I recently picked up an iPhone 13 Pro, and to be honest, while it is the best P&S I’ve ever used, I took a simple low light picture last night to send to a place I bought something from to show a defect in the product, and was immediately struck by how aggressive the NR still is. No cropping was done either. It’s improved a lot since the iPhone 4/5 days, but I still wouldn’t even trade in my A7R at this point.