Concerning the conversion factor for DSLRs - I think the easiest way to figure it is to first convert the lens mm, then divide by 50. For example: a Canon 350D has a factor of 1.6. So a 300mm lens on a 350D is equivalent to a 480mm lens (300 x 1.6). Then, to get the power, divide by 50 (480/50 = 9.6x).
After doing all this math and looking at the lenses available for DSLRs and their cost, you now see why people use digiscoping if they want REALLY high power. This is not to say that the results are nearly as good as pictures taken with a DSLR and a good lens.
Finally, I do think that you are correct that many bird images you see on the web are heavily cropped to make the bird fill the frame. After cropping, many could not be printed very large at all. But then again, some folks are expert wildlife photographers and do know how to get really close, which is required for a high resolution picture of a very small bird.