You are right, as advances in electronics take place, smaller, quiter circuits are developed which need less power to operate. It really does make you think that anything is possible. Alas, the requirements of feature laden circuitry made from discrete components will set limits on the size. Unless, of course, the makers can develop their own proprietary, encapsulated chipsets - - the development COSTS of which which I doubt any of us would care to pay.
Take that foot detector, for example. It IS small already ....and it's very basic.
Add real features, especially the useful processing and ergonomic related ones and size reaches a finite limit. The cell phone is another great example. Good thing you mentioned it.
They COULD actually get much smaller, but YOU wouldnt be able to work the controls! And since Motorola and Nokia CAN expect to sell them by the millions, they DO invest in development of proprietary circuit designs.
Too, the real reason they were able to go smaller and LESS powerful was that the infrastructure to support them has jumped forward by leaps and bounds - mostly because everyone is willing to pay for it! The old bag phones were really high powered radio units, as the now-familiar towers with their "cells" of coverage didn't exist at the time. Knock them down, and you'd be right back to bag units.
But what do I know, I just have a degree in electronics and am a member of an industrial ergonomics design group. Hey , I've been wrong before... but I might be mistaken about that.