[Leica] Is this how pixels and dpi work?

[lew1716 at gmail.com (Lew Schwartz)]

My understanding:
A 40mp sensor (for example) produces information for 10mp points of capture
due to the fact that the Bayer filter takes groups of 4 input sites (GRGB)
to produce a single point of capture record.

If we have a full frame sensor, that would produce (@2:3) a capture of
aprox. 2582p x 3873p

Assuming
1.  that the printer & software editors output 1 capture datum to 1 dot of
print (&I understand that this is not necessarily the case)
 -and-
2. that we output to the printer at 360 dots/in

We would have a print of aprox. 7 x 11 inches.

So is the up & down sizing so good that I can produce images of just about
any size I want? What's the practical limit on the up side?

-Lew Schwartz