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I wouldn't buy a smaller iPad. The 9.7" was exactly the reason I bought it (pdfs just work better on big screens). With the current prices of the new iPod touch, I doubt that apple could stick with the prices for the iPad if they were to make a 9.7" retina display. And shelling out a whopping $XX00 for an iPad just seems overkill for me. I guess the 2nd. gen iPad will more be like incremental improvements.
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