You wouldn't need to switch pixels off, just not read them.
If you reduce the resolution say from 8mp to 2mp (by selecting small jpeg) the processing software would only need to read every fourth pixel.
I would imagine, as this is the simplest aproach, that is what happens.
A more complex way would be to select every fourth pixel and compare it to it's immediate neighbours and take the average, but I still think it will make no difference to the noise.
This is indeed the method, nothing is switched off, its just not read, that process is controlled by software and easy to write in.
What its not doing though is combining the output from 2 or more pixels to create one larger pixel, you actually need physically larger pixels.
The pixel size on the 550D is 4.7 microns
The pixel size on the 5Dmk2 is 6.4 microns
The pixel size on the 5D is 8.2 microns
An object 8.2 microns across will obviously have more light fall onto it than and object 4.7 microns across.
Now we get to the complicated bit.
Canon have worked around the problem with smaller pixels by increasing the coverage the micro lens above them gives.
On the 500D for instance the micro lenses have gaps between them that receive no light, on the 550D they implemented a gap-less micro lens system that means each pixel receives more light than it did in the 500D.
Low light performance in the G range of compacts was not that good with the G10, for the G11 they dropped the pixel count to 10mp so you had larger pixels, this improved the low light performance, but I think it may have been further improved by gap-less technology on the G12 though I'm not sure as I haven't checked yet.
Then we have improvements in firmware and processing, these can help in pushing up the effective ISO of the camera.
I can still remember when a good camera had just ISO 50-400, its been now pushed to awesome levels, even my lowly 500D will give fairly decent shots @ ISO 3200, even then it can go on to 12800 if needed.
Later models can really push the ISO and good shots at ISO 6400 and higher are possible, all this is down to the better sensors and processing available in these models.
Another improvement here is how the newer sensor/firmware combination handles noise in images, most now automatically take and subtract a dark frame, its my betting it wont be long before they are taking flats to help combat any distortions in images, in fact its already probably being done in camera.
Pixel binning is what I was talking about earlier, its the effective combining of the output from a group of pixels and treating that output as the output from 1 pixel.
With 2x2 binning an area 2 pixels by 2 pixels has its charge combined and is treated as 1 pixel, so in effect increasing the surface area of a pixel by 4, whilst this lowers the resolution of the sensor it has the benefit of increasing the amount of light detected, improving the signal to noise ratio and lowering noise.
Camera's really have gone way beyond the simple amount of light falling on an emulsion and the choice of good fast lenses, they really are in the realm of rocket science as its astronomy (digital astronomy) which has led the way in how to maximise image resolution in low light.
I bet a lot here wont realise that a lowly 8mp astronomy camera can out shoot any DLSR when both are connected to the same telescope.
So yes you will get better low light performance from a lower pixel density as it will have larger pixels, but... the 5DMK2 will still compete or out shoot the larger pixeled 5D due to its gap-less micro lens technology and better processing.