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The Sony 950 is only slightly larger than K3 (7.87 x 5.04 x 0.38 vs 7.5 x 4.8 x 0.335). The screen is the same width, just taller (3:5 aspect instead of 3:4). So it is by no means unwieldy. It looks like a great ereader, I would love to have one to play around with (if it was free that is...).
That said, I don't think 3:5 is a great aspect ratio for reading, much less PDF viewing (because most PDFs are 3:4 or thereabouts). If you could have a slightly larger 3:4 screen (say 660x880) I think it would be more usable without bloating the form factor: better text layout with larger fonts, slightly better PDF full screen viewing etc.
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