That's how it works. Also, the larger sensor would also need a larger lens, I would think, so the sensor is fully exposed. The 5442 series uses the 1/1.8" sensor and works quite well. The 12.5" sensor works very well in a 2MP camera.
Thank you, based upon the information in this thread it appears the IPC-HDW5442TM-AS/ASE would be a good candidate.