It is still using the 4 million pixels - the camera doesn't change the "pixel resolution screen" on the camera when you go from 4MP to 2MP. The sensor still needs 2 times the light going from 4MP to 2MP, so the native 2MP camera will result in a better image at night. The firmware will make some attempt at downrezing it, but it could be a complete crap image or a usable image, but if there is a concern that the 4MP isn't performing or wouldn't perform well at night, then it is better to go with the 2MP.
I have a 4MP and 2MP on the same 1/2.8" sensor and the picture quality is quite different between the two and the 2MP kicks it's butt at night.
In most instances, you want to get a camera that will perform at your location for the worse situation, which for most of us is at night when it is dark and there is little to no light. If a camera performs at night, it is easier to tweak settings to make it work during the day than it is the other way around.
My 2MP cameras outperform my neighbors 4K (8MP) cameras....why....because they are both on the same size sensor.
When we had a thief come thru here and get into a lot of cars, the police couldn't use one video or photo from anyone's system but mine. Not even my other neighbors $1,300 8MP system provided useful info - the cams just didn't cut it at night.
My neighbor tried the "I will just downrez the 8MP to 2MP" and the image was a soft dark mess.
His system wasn't even a year old and after that event has started replacing with cameras purchased from Andy here based on my recommendation and seeing my results. He is still shocked a 2MP camera performs better than his 4k cameras and he cannot figure out why downrezing from 8MP to 2MP doesn't work properly... It is all about the amount of light needed and getting the right camera for the right location and downrezing doesn't change the physics of the camera.
It is simple LOL do not chase MP - do not buy a 4MP camera that is anything other than a 1/1.8" sensor. Do not buy a 2MP camera that is anything other than a 1/2.8" sensor. Do not buy a 4K (8MP) camera on anything smaller than a 1/1.2" sensor. Unfortunately, most 4k cams are on the same sensor as a 2MP and thus the 2MP will kick its butt all night long as the 4k will need 4 times the light than the 2MP... 4k will do very poor at night unless you have stadium quality lighting (well a lot of lighting LOL).