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I think I personally would opt for more features like touch screen and additional wireless features (like bluetooth) rather than size. The current size fits nicely in my handbag and I am not bothered by the amount of text on a single page.
For graphics, size is a whole other matter, but I only use my Kindle for leisure reading. (Although I did try to put an instructors reference manual on my Kindle and it turned all my little symbols into hash.)
cheers
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