Sharpness, no, but everything is relative and theres a certain "swings and roundabouts" effect here, where a gain in one area is seen as a cost elsewhere. We get more MP in our image which gives us a smoother product with better tonal graduation but at a cost. Canons job is to minimise the downside while maximising the upside.
Diffraction is often quoted as a big problem, but Canon themselves remain upbeat about controlling it.
The other big issue oft quoted is noise, but look at the advances made from, say the 30D to the new 1D Mk4, the level of noise apparent at 400ISO in the 30D is now only seen at maybe 1600ISO in a camera with twice the MP.
The truth is we are still in digitals infancy, we have no idea where the technology will take us. I fully expect to live to see cameras offering many hundreds of MP instead of "only" the low tens we see now.

