This is true, but you can't defeat the laws of physics!! Small sensors have very small pixels, so have limited light gathering ability and consequently limits the dynamic range. Cheap optics, will always be cheap optics, there are no shortcuts here. These two things are fundamentally why there is a difference between mobile phone cameras, compact cameras, DSLRs, etc.
Software can be very clever, but it can only interpolate, ie make a best guess based on input data.
That said its an interesting concept, and yes I can see future generations being quite clever and sophisticated.