Just put personal thoughts here for better communication:
On hands-on experience with LPS/Erdas Imagine plus our limited testing on ArcGIS 10.1 (Beta 2), it is too difficult for current MD data model & infrastructure to handle the traditional up-to-10-cm airphotos 'properly and efficiently' for ortho-rectification, in particular, using classic photogrammetry theory such as bundle adjustment.
However, very optimistic on the future releases to bring us somewhere in that direction with modern airborne camera devices and spaceborne sensors (saying, a mimic or copycat of the traditional bundle adjustment workflow). Of course, as an alternative option for photogrammetry, it may be also good idea easily for camera vendors to customize MD model to support any camera devices, if the objects are open.
As heard, in fact, Lidar processing and data analysis may be already supported within the pre-release of ArcGIS 10.1. Hopefully, airborne Lidar inclusive and processing /analysis good enough, when used in operation.
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Personally, on new MD infrastructure, it should be an IT-enhanced MD. The new MD model should be manageable in operation, saying, only remotely access the raw data folders with 'READ' permission during creation of MD, that is, no any direct 'write' onto the raw data folders. So, it will be different from current MD model (mixed) and also different than LPS (pure 'local').
On more efficient computations, besides, new algorithms with lower computation complexity should be applied somehow, like spline-like least square.