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I can see the potential for a smaller (1/2 size) iPad if they feel the need to compete with the regular ereader market. But I'm another one who highly doubts they'll include a phone in a future iPad, regardless of size, or upsize the iPhone instead.
Apple's phones are released in the summer, so summer 2011 is your next opportunity to see if they'll "go large" with the iPhone. Personally, I wouldn't wait that long if you're ready to upgrade now.
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