There used to be a time where "professional" photographers would insist that 4x5 inch negatives were too small for professional results. Then professional camera systems started using the 4x5 inch format. 6x7 centimeter negative were definitely much too small to be useful though... Then 6x7 and 6x6 centimeter formats became the professional standard... Leica started using 35mm cinema film strips instead of actual photographw pellicule for tiny 35x24 mm negatives... that was definitely too small, a pro would never use that... until they did and it became the professional standard, called "Kleinbildformat" ("Small Image Format")... that format was too large for digital sensors, so the standard for professional digital camera systems became APS-C. Later on, it became technically possible to make larger sensors, and the "Small Image Format" suddenly was renamed by marketing departments to "Full Frame Format"...
It all means absolutely nothing at all. Different formats of sensor just offer different starting points to get a different magnification. There is always a lot of talk about aperture and sensor size and other "features" that boost product prices, which is OK, the camera and lens business is not easy. But in reality, there is so much crap being told, because the only thing that really matters is the magnification, the proportional size of the projected object on the sensor in comparison to the real perceived size of the object. Smaller sensors can have benefits in certain applications.
I actually prefer APS-C for small image format sensors, not "full frame", because in practise, APS-C offers the right magnification standard for the kind of pictures I take.
I also often use smaller sensor sizes than APS-C, m43 or CX. Nikon's CX format is the so-called "1 inch standard". It is used by many popular cameras, and is a valid and very useful sensor format that makes sense.
The Nikon 1 V1 is a bit older, and that means that it will not perform as well in low light as newer camera systems, but it outperforms analogue film technology in terms of both resolution and low light performance, and the fact that a newer system comes out doesn't mean that the older system is suddenly bad. The Nikon 1 V1 has a nice rendering, nicer than many more modern cameras. The CX system does not have a big ecosystem, the Nikon 1 series is not the most successful, and maybe it will be discontinued in the future. That is a more important argument than the sensor size. It is an argument that for me would make the Nikon 1 system uninteresting.
To get into photography, you can spend very little money to get great image quality. A new APS-C DSLR is now sold for less than 300 EUR (Canon 1200D), and lenses for such systems are still the cheapest on the market because there are so many of them. A used APS-C from Canon or Nikon is generally less than 100 EUR and is everything you will ever need for professional results. M43 camera systems are really nice because practical, but they are fashionable and thus relatively expensive in comparison to APS-C DSLR systems, but mirrorless systems are more conducive to creativity than DSLR's because of the live viewfinder preview, whereas DSLR cameras definitely are conducive for a faster workflow, for reportage for instance.