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To illustrate Jobs point, consider the iPhone 4 with high resolution screen. It allows you to see a near desktop size view of a webpage, only with the text REALLY small. Try to click on a list of links and it the right one. It's difficult, unless you also had REALLY small fingers.
Now you can pinch to zoom, and you can design your app for small screens. But you can't have all the functionality of a 10" app in a 7" (half the size) screen. Not for all types of apps.
Is the screen size enough of an improvement over phone sized screens to support new app development, and then another app development effort for 10" screens? Time will tell.
Lee
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