Just what is "SLR quality?" It can't be pixel count, because a smaller imaging sensor can have the same count but deliver poorer performance. It might be low-noise performance, which is an intrinsic advantage of larger-size image sensors (all other things being equal). But if a noise-reduction method can do its stuff without affecting detail/acuity, then a large sensor is not essential, either. Quality-of-glass is also not a given - manufacturing tolerances must be tighter when producing miniaturized components. There's no law of physics I'm aware of that precludes miniaturization to smart phone dimensions. One can get into the "no bokeh" and DoF arguments, but those are aesthetic things - who says the shape of the iris should have an impact on the image? In a no-iris lens, it could be considered an aberration that has been eliminated. With depth data available, DoF effects can easily be constructed, and, when combined with a bokeh effect...
And so on.
In terms of the hypothetical (not knowing if this is how LinX does it)... As noise is a random function, two sensors imaging the same scene will likely have the noise artifacts in different locations. Sum-and-difference techniques can separate the random anomalies from the elements that are common to both images. The same approach can be used to reduce lens artifacts.
In the end, maybe "SLR quality" could turn out to be "quality of a 5-year-old cropped-sensor DSLR." Nobody said, "Quality of today's best available DSLR."
If I had a penny for every "It can't be done" uttered over the past 200 years, my lifestyle would be very different than it is. I'd probably be off right now attending a private chamber music performance, or reading a print book in some exotic, off-the-grid location, away from all this noise. Or maybe I'd own a 4 x 5 view camera with an imaging sensor that would blow today's best DSLRs out of the water.