Sorry, but that is a ridiculous statement disparaging Erwin Puts who knows fully well the advantages and disadvantages of MF compared to 35mm.
And to say Leica set out to deliberately "brainwash its customers" so they wouldn't "upgrade to MF", disparages both the company and paints it's customers as being stupid ... neither of which is true.
Everything is a trade off. With the advantages of larger film or sensor area comes the disadvantage of size, weight and slower control ... and in the case of digital MF, substantially higher cost. If ultimate image quality is your absolute goal, then an 8X10 View Camera is the way to go. If capturing fast breaking news or events is the task, then an AF 35mm SLR is the tool. If you want an highly portable, unobtrusive camera then a rangefinder is a consideration. Horses for courses.
However, digital technology is indeed redefining many photographic principles. What seems impossible today, becomes an everyday solution tomorrow.
A digital Leica M was not possible just a few years ago because Rangefinder lenses sit much closer to the sensor surface than do SLR lenses. This made wide angle lens use with a digital rangefinder an issue due to the severe angle the light was hitting the far edges of the sensors available at the time. Technological advances in sensor design has solved that to the degree that Leica can now bring a reasonable digital solution to its rangefinder customers.
In many cases with current digital offerings, the camera's firmware and processing software has a lot to do with end quality.
Again, it is often a matter of trade-offs. Fuji S series digital cameras are known for their dynamic range compared to many other competitors but they are a bit slower in handling. The Canon 5D has an amazing high ISO functionality, but is considerably slower than it's 1 Series siblings and produces softer initial files in need of post processing work.
Like with film based cameras, MF digital cameras with their larger sensor size produce smoother tonal gradations and slightly better dynamic range then even the full frame, 16 meg Canon 1DsMKII. However, all MF solutions now available are limited to lower ISO ability and like their film counterparts are slower, larger and heavier systems.
I speak to these subjects not in theory, but in application. I currently have and use many of the various systems or have had and used them. In my gear closet sits a full Leica M system soon to be augmented with the new digital M8 rangefinder; A Leica DMR9 and slew of stellar R lenses; A full Canon DSLR kit including the 1DsMKII and 5D sporting nothing but fast L primes and a few L zooms; A full system of Hasselblad MF (500 series and 200 series cameras and complete range of Zeiss lenses) with an Imacon CFV digital back; A Hasselblad H2D/39 645 digital camera and full range of HC lenses, A Mamiya RZ 6X7 studio system with a 33 meg Leaf Aptus 75 digital back.
I do not confuse any of these solutions with one another. Which to use is dictated by the application needed.