In order to tighten the control of the conditions I ran the same test on a controlled target to eliminate any risk of lighting variations or subject position. This time I only shot with the 1D3, 40D and 50D. Here is a screen print of the test target, to show that the details are there, if the cameras can pick them up. The smallest fonts in the middle are at 8,9,10,11,12 point. The top row is at 14 point and the bottom row is at 72 point. I placed the smallest text in the centre of the subject to take advantage of what I imagine to be optimum lens sharpness....
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Here is the whole test scene as captured by the 50D....
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For each camera I shot multiple frames and selected the sharpest for each, having focused using AF and also manually with Live View at 10X magnification. I used MLU and a timer. Each camera was on a tripod, legs collapsed, standing on a concrete floor with hard tiling. Here are 100% crops, processed identically in DPP with sharpening = 3 and NR = 0,0, from the 1D3, 40D and 50D respectively....
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To my eyes the 1D3 resolves text legibly only at 14 point and larger. The 40D is legible at 12 point size and I think you might be able to guess with some success at 11 point size. I think the 50D text is clear enough to read with reasonable confidence down to 10 point size. I did try outputting the crops at 200% size as well but all that did was to confirm that there is no more detail to be teased out - the 50D is as clear with 10 point text as the 40D with 12 point text and the 1D3 is pretty much mush untli you get to 14 point size.
With the 50D having a linear resolution 1.22X greater than the 40D it seems an interesting correlation that the 50D can resolve text 1.2X smaller than the 40D can manage. Coincidence?