When you press and hold the size button it takes you to landscape mode but does not repaginate so you have to flip between the two halfs of the page. I can see why this would be important if you are reading a pdf or some sort of fixed page kind of thing but I'm reading a text file which can have page breaks anywhere. I find this anoying and was wondering if there was a way to change this behavior?

As far as I know, there isn't any way to change that. I hadn't really thought about it not being two pages until I checked how bookmarks worked in landscape mode. :shrug:

The part I find anoying is the grayed out text at the bottem for the top half and top for the bottem half. I don't care if it the page number does not change but I find the grayed out text distracting.

The grayed out text is (of course) a feature... there's less text on the page in the landscape big text mode, so it helps give you context between pages. I used to have a problem on my Treo because I would lose track of the sentence between screens and have to flip back and forth to catch up again.

But one could also argue that it takes up precious real estate and is a nusiance to read grayed out text also.

I haven't tried it enough myself to know which I like better yet. They gray is nice in theory, but in practice I'm not so sure...

The grayed out text is (of course) a feature...

There was reader software for my IPAQ that did that as well. Drove me crazy until I found a program that did not have that "feature". Perhaps this will be addressed (let me turn off the behavior) in a software update.