When Sony had their trade in special I decided to get the 350 since I already have a Kindle 3. I figured I didn't need two 6" screens. My first though when I opened it was OMG its so tiny. I wasn't sure I could get used to it. I just got it five days ago and have been using it exclusively to see if the size is okay for me. It wasn't as hard as I thought it would be to get used to. The size really made a difference the when I take it out with me. So much smaller and easier to fit in my purse than the kindle.
But like everyone else said it really depends on your eyes. I use the small font on the 350. I think if someone needed anything bigger than the medium font they would be better served with a bigger reader.
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