There are a lot of new 5" ebook readers that are quite popular. I wouldn't be surprised to see Amazon release their own 5" Kindle. I'd expect it to cost $179 or so, so as to beat the competitors on price by a little and still leave enough of a price gap for the $259 6".
Personally, I think there would be a decent-sized market for a 5" Kindle. The PRS-300 is very popular and so are the HanLin clones.
Last edited by The-eBook-Reader; 01-16-2010 at 04:35 PM.