I don't know the answer to this from experience. I did own a 5 megapixel camera before but, I never did any panos with it. Academically speaking, I don't believe that you would see an improvment. Quality and size do not necessarily go hand-in-hand. Actually, they don't at all really. If your 4 megapixel camera is of comparable quality to the 5 megapixel, you should only see an improvement in size. I think that for many years, size and quality did go hand in hand. Because digital camera quality and ccd sizes "grew-up" together, we have become used to thinking about the two as related. I do believe though that with current digital cameras of good quality, you should find that quality and size are independent variables.
The ccd/ cmos image recording chip contributes considerably to the image quality. BUT it depends on your ultimate use of the image.
For printing, BIGGER CCD/CMOS is ALWAYS Better (daves truth axiom).
However if you want to display your panorama work on an internet webpage... then current 3.34 to 4megapixel cameras are quite sufficient. Typically a 2 or 3 shot panorama taken at say 2048 x 1536 pixel size single image after stitching results in a final sitched image around 12 to 13 megabyte. That image has to be resized downward [read resize as pixel removal process] downward to around 3.9mb non compressed .bmp and then converted to a .jpg that is around 70 - 90kb for internet download speed.
So for web page work.. sure bigger is always better, but your going to need to deflat that picture in order for others to see it.
Concerning the ppi [pixels per inch] even if your current image is 300 ppi, it makes little difference because your visitors monitor can only read 72 ppi.
Concerning the dpi [dots per inch] your image can only be printed at 300 dpi image IF you printer has the ability to sprinkle ink to that 300 dot matrix. Most newer ink jet printers will print at 300 or higher dpi. Hence the better detail.
Just a thought on the subject.
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EasyPano - Panoweaver
Not quite true. CCD size is an independent variable of image quality. I would pick a Canon d30, at 3 megapixels, and interpolate the photos up to double the size any day before I would choose any other 3, 4, 5, or 6 megapixel prosumer digital camera on the basis of chip size. There are other variables at work, such as color filters, color space, and recording algorithms, that are far more directly related to image quality than is size.
Using the d30 example (there are examples of higher quality chips at any chip size), you would get a better pano using a d30 than you would using almost any other 3 megapixel camera. However, just because you upgrade to a 4 megapixel prosumer camera, does not mean that you will surpass the quality of your d30 panos. You'll just be able to print them larger!
This is why an upgrade from a 4 to a 5 megapixel camera will not give you better panos alone. However, an upgrade from a 4 megapixel camera to a 5 megapixel camera with a BETTER chip, will give you a better pano.
Confusion in this area tends to perpetuate because chips are getting larger and larger and, at the same time, chips are getting better and better. It's a correlational relationship only.