Some of this discussion falls into the area of artistic taste. On the technical side, if you carry out a calculation to too many decimal places the end result is less meaningful. It may be exciting to know that a particular document film can resolve X lines but not even the best general purpose lens will provide 250 lines/mm. That's just not realistic.
Well, it is realistic when you are using the right lenses and the right film. See my post above.
Zeiss had published their test results on Spur Orthopan film (Agfa HDP microfilm, identical to Adox CMS 20, first version) with their ZM Biogon at f4 of 400 lp/mm. So they reached the diffraction limit at f4.
Here on photrio we've had several reports that members reached the diffraction limit at f5.6 (about 250 lp/mm) with high-quality lenses (me included).
Improvements in lens sharpness have been incremental.
No, they have been huge at open aperture, very big at one stop stopped down, and clearly visible more stopped down with the modern, highest quality lens designs.
It has been observed that the 85/1.8 AF Nikkor is sharper than the 105/2.5 AIS Nikkor. I have and like both. If you can't get sharp images with a 105/2.5 AIS, it's not the lens.
That is not the point. With a Nikkor 2/105 DC, 1.4/85 AF-S or a Zeiss Milvus 1.4/85, you get a significantly better performance in the range of f1.4/f2 to f5.6 compared to the old 2.5/105. That gives you more creative freedom, and the possibility to use slower, higher quality films in many situations.
When we are talking about very slow films (under ISO 100), these are already not suitable for every kind of picture taking.
The point is: With these improved modern lenses it is possible to use slower films with their better quality much more often, because it is not needed anymore to stop down the lens by 2-4 stops to get very good optical quality.
Can someone see great improvement in lens quality by looking at 5X7" prints? Probably not.
Defintely yes. As already explained, the difference in lens performance with the improved current lenses is clearly seen, especially at open aperture and one stop stopped down.
Again, if I know I will need to make a much larger print, I would rather use medium format film.
And with medium format film you often have to use higher speed film, which is significantly reducing the quality.
With the current improved f1.4 lenses, combined with films like Velvia, Provia, TMX, Panf+, Delta 100, Acros II, HR-50 you get an outstanding quality also with big(ger) enlargements. A quality with which you won't miss medium format very much, also having all the advantages of 35mm.
If used properly, slower film can make the images look even better.
Yes, of course. And with these modern, much improved lens designs you can use slower films much more often, in more situations.